The Profit and Loss Appropriation Account is merely an extension of the Profit and Loss Account of the firm, Which, among the following, is not shown in the Profit and Loss Appropriation Account?

All adjustments in respect of payment to Vendor.

The correct answer is Option (2) → All adjustments in respect of payment to Vendor.

The Profit and Loss Appropriation Account is prepared to show how the firm's net profit for the year is distributed or "appropriated" among the partners. It deals with items related specifically to the partners, such as:

• Partner's Salary (Debit side)

• Interest on Capital (Debit side)

• Interest on Drawings (Credit side)

• Transfer to General Reserve (Debit side)

• Final division of Profit/Loss (Debit/Credit side)

A payment to a Vendor (a supplier of goods or assets, or a person who sold a business to the firm) is an expense or a liability settlement of the business. Such transactions are recorded in the main Profit and Loss Account (or Trading Account), not in the Appropriation Account, as they are not part of the distribution of profit among the partners.