With which of the following item does profit and loss appropriation account start by the partnership firm?

Either option 1 or 2

The correct answer is option 4- Either option 1 or 2.

Profit and loss appropriation account starts with the net profit or net loss that came out from the profit and loss account. If the profit and loss account shows net loss then it is transferred to debit side of the Profit and loss appropriation account and if the profit and loss account shows net profit then it is transferred to the credit side of the Profit and loss appropriation account.