The correct order of preparation of accounts in case of partnership is :

(A) Trading Account
(B) Balance Sheet
(C) Profit and Loss Account
(D) Profit and Loss Appropriation Account
(E) Partners' Capital Account

Choose the correct answer from the options given below :

(A), (C), (D), (E), (B)

The correct answer is Option (3) - (A), (C), (D), (E), (B).

The correct order of preparation of accounts in case of partnership is:

A) Trading Account – To determine the gross profit or loss.

C) Profit and Loss Account – To calculate the net profit or loss.

D) Profit and Loss Appropriation Account – To divide the profit or loss among the partners.

E) Partners' Capital Account – To record the movements in the capital of each partner.

B) Balance Sheet – To show the financial position of the partnership at the end of the period.