There is not so much difference between the preparation of final accounts of sole proprietorship and partnership. Which additional account is made or removed from the final accounts of partnership?

Profit and loss appropriation account is made

The correct answer is option 2- Profit and loss appropriation account is made.

There is not much difference in the final accounts of a sole proprietary concern and that of a partnership firm except that in case of a partnership firm an additional account called Profit and Loss Appropriation Account. It is prepared to show distribution of profit and loss among the partners. 

Profit and Loss Appropriation Account is merely an extension of the Profit and Loss Account of the firm. It shows how the profits are appropriated or distributed among the partners. All adjustments in respect of partner’s salary, partner’s commission, interest on capital, interest on drawings, etc. are made through this account. It starts with the net profit/net loss as per Profit and Loss Account.