Which of the following item is not shown in the Profit and Loss Appropriation Account?
Options:
Partner's Salary
Interest on Drawings
Interest on Capital
Depreciation
Correct Answer:
Depreciation
Explanation:
The correct answer is Option (4) → Depreciation
The Profit and Loss Appropriation Account is prepared to show the distribution of net profit among partners. Items like Partner’s Salary, Interest on Capital, and Interest on Drawings are shown here.
Depreciation, however, is a business expense and is charged in the Profit and Loss Account, not in the Profit and Loss Appropriation Account.
