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Home Questions KC62VKSTUY
Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Partnership

Question:

Match the following related to the partnership account.

A) Profit and loss adjustment A/c I) Net profit
B) Profit & loss appropriation A/c II) Rectify errors after preparation of the final account
C) Profit and loss A/c III) Financial position
D) Balance sheet IV) Extension of p & l account

Choose the correct answer from the options given below.

Options:

A-I, B-IV, C-II, D-III

A-II, B-IV, C-III, D-I

A-II, B-IV, C-I, D-III

A-IV, B-II, C-I, D-III

Correct Answer:

A-II, B-IV, C-I, D-III

Explanation:

The correct answer is option 3- A-II, B-IV, C-I, D-III.

A) Profit and loss adjustment A/c II) Rectify errors after preparation of the final account
B) Profit & loss appropriation A/c IV) Extension of p & l account
C) Profit and loss A/c I) Net profit
D) Balance sheet III) Financial position



* Profit and loss adjustment A/c- Sometimes a few omissions or errors in the recording of transactions or the preparation of summary statements are found after the final accounts have been prepared and the profits distributed among the partners. Necessary adjustments can be made through Profit and Loss Adjustment Account. Thus, errors are rectified through this account.

* Profit and loss appropriation A/c- 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.

* Profit and loss A/c- P & L Account is a Nominal account as it contains all the expenses and income of the business entity. The last result of this account is net profit or net loss.

* Balance sheet- Balance sheet tells us about the financial position of the business at the end of the year.

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