Accountancy Part AAccounting for Partnership

__________ is an extension of profit & loss A/c in case of partnershi…

__________ is an extension of profit & loss A/c in case of partnership firm.

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → Profit & Loss appropriation A/c

NCERT (2026-27 edition):
Profit and Loss Appropriation Account – “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.”