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Query - what is the difference?

Anil (1638 Points)

18 December 2009

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

Thanks.

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P & L Appropriation A/c is prepared at the time of finalisation of accounts to show appropriation (Distribution) of profits.

P & L Adjustment A/c is prepared after finalisation of accounts to rectify any error in the accounts or to give retrospective effects for some adjustments.

Eg.: For valuation of goodwill some adjustments are made in final accounts i.e. to record expenses.

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Abhay (1) (123 Points)
Replied 19 December 2009

I am agree with the above aswr

VICKY (CA-Final) (68 Points)
Replied 19 December 2009

agree with ketan

further

adjustment is the modification of calculated profit

raher appropriation is the distribution of final profit among the retain earnings & distributed dividends

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Ansari (ca final) (444 Points)
Replied 20 December 2009

Originally posted by : Ketan Kumar G Shah
	P & L Appropriation A/c is prepared at the time of finalisation of accounts to show appropriation (Distribution) of profits. P & L Adjustment A/c is prepared after finalisation of accounts to rectify any error in the accounts or to give retrospective effects for some adjustments. Eg.: For valuation of goodwill some adjustments are made in final accounts i.e. to record expenses.