27 March 2009
Once P&L A/c is prepared. to do some adjustment with Net profit, pre-decided by management, a seprate A/c is prepared known as P&L Appropriation A/c.
28 July 2009
Appropriation account: Part of the income statement (profit and loss account) that explains how a firm's profit has been used to pay dividends, and/or to increase reserves indicated in the balance sheet. It states what happens to profit, instead of how it was earned, and is usually shown separate from the main statement
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