A correct journal entry for Transfer of

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Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Partnership

Question:

A correct journal entry for Transfer of the balance of Profit and Loss Account (a credit balance) to Profit and Loss Appropriation Account: is-

Options:

Profit and Loss Appropriation A/c Dr. To Profit and Loss A/c

Profit and Loss A/c Dr. To Profit and Loss Appropriation A/c

Profit and Loss Appropriation A/c Dr. To Partner's Capital/Current A/c's

Partner's Capital/Current A/c Dr. To Profit and Loss Appropriation A/c

Correct Answer:

Profit and Loss A/c Dr. To Profit and Loss Appropriation A/c

Explanation:

The correct answer is Option (2) → Profit and Loss A/c Dr. To Profit and Loss Appropriation A/c