Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:

Profit and Loss adjustment account is made........... profit and loss appropriation account by a partnership firm.

Options:

Before

After

Parallely

None of these

Correct Answer:

After

Explanation:

Profit and Loss Adjustment Account is made for correcting error after preparation of final accounts and profit and loss appropriation account is made for transactions relating to partners like salary, commission, interest on capital etc. and this is done before preparing final accounts.