Profit and loss appropriation account is prepared by the partnership firm to find out:

Divisible profit

The correct answer is option 3- Divisible profit.

The Profit and Loss Appropriation Account is prepared by a partnership firm to find out Divisible Profit.

Net profit is transferred from the profit and loss account to the profit and loss appropriation account. All appropriations like interest on capital, salary to partners are provided to partners. The remaining profit after the appropriations is divisible profit.

OTHER OPTIONS

• Gross Profit- Found in Trading Account
• Net Profit- Found in Profit & Loss Account
• Super Profit refers to the excess profit earned by a business over and above the normal profit expected based on industry standards or return on capital.