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.

All adjustments in respect of payment to Vendor is a business expense or liability payment, recorded in the Trading or Profit and Loss Account, not in the Appropriation Account. It has nothing to do with profit distribution among partners.

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. All adjustments in respect of partner’s salary, partner’s commission, interest on capital, interest on drawings, etc. are made through this account. It starts with the net profit/net loss as per Profit and Loss Account.