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CONTENT:
- Profit and loss Appropriation Account: Uses
- Appropriation Items (i) Amount written off (ii) Good will (iii) Preliminary expenses (iv) Amount transferred to reserve; (i) Bonuses (ii) Dividends
- Preparation of profit and loss Appropriation Accounts.
- The company balance sheet – Layout, Preparation, Analyzing or
- Interpretation.
Profit and loss Appropriation Account: Uses
The final accounts contains of:
- Trading account
- Profit and loss account
- Appropriation account
- Balance sheet
Trading account: Trading account of company is not so different from that of the Partnership apart from some peculiar items to Company.
Profit and loss account: There are some items in the company profit and loss account that may be found in neither partnership nor sole proprietorship, such items include: interest payable on debentures and loan, directors fees, audit fees, company tax, dividend paid and proposed and charges relating to previous years. Despite these, the preparation is still the same.
Appropriation account: The purpose of appropriation account is to distribute the profit after tax made by the business to various expenses headings.
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