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Question

The _______ Account shows the distribution of profit after the same has been earned and computed by a partnership firm.

This question was previously asked in
SSC CGL 2020 (Tier-2) Statistics Previous Year Paper 3 (28-Jan-2022)
The correct answer is

Profit and Loss Appropriation

The correct answer is option 3. The Profit and Loss Appropriation Account is used to show the distribution of profit among the partners, after the computation of net profit from the Profit and Loss account.

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Similar Questions

  1. X and Y are partners in a partnership firm without any agreement. X has withdrawn Rs. 55,000 out of his capital as drawings. What is the interest on drawings that may be charged from X by the firm?

  2. In case of a Partnership Firm, a ______ is prepared to show the distribution of profits among different partners.


Important Questions from Partnership Accounts

  1. The ratio by which the existing partners lose in favour of the new partner is known as the __________.
  2. Amount due to outgoing partner is shown in the balance sheet as his
  3. Goodwill of a firm of X and Y is valued at ₹ 30,000. It is appearing in the books at ₹ 12,000. Z is admitted for $\frac{1}{4}$ share. What amount he is supposed to bring for goodwill ?
  4. X and Y are partners sharing profits and losses in the ratio of 3 ∶ 2. They admit Z as a new partner with 1/5 share in the profits. Calculate the new profit sharing ratio of the partners. 

  5. Ram and Shyam are partners in a firm with capital of ₹ 4,80,000 and ₹ 3,10,000, respectively. They admitted Ganesh as a partner with $\frac{1}{4}$th share of profit. Ganesh brings ₹ 3,00,000 as his capital. Ganesh's share of goodwill will be

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