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).

Final accounts of partnership firm are prepared in the following manner-
* Trading account- prepare to calculate gross profit
* Profit and loss account- prepare to calculate net profit
* Profit and loss Appropriation account- prepare to calculate divisible profit
* Capital account of partners- prepare to calculate capital balance of partners
* Balance sheet- prepare to know the financial position of the firm