What is the difference?

This query is : Open

Anil (Querist)
Follow

18 December 2009 Please let me know the difference between P & L adjustment account and P & L appropriation account.

Thanks.

Jag Bhushan Sharma

Jag Bhushan Sharma (Expert)
Follow

18 December 2009 P&L Adjustment A/c is used for revaluation of assets and liabilities. P&L Appropriation A/c is used for distribution of profit and crediting reserves.

Anil

Anil (Querist)
Follow

18 December 2009 Thank you very much for your response sir.

In case an asset is revalued upwards we debit the concerned asset and credit revaluation reserve account. When does P & L Adjustment account come into picture?

Thanks.

Upgrade to CAclubindia Pro. Subscribe Now!