What is the sequence of preparing accounts by a partnership firm?
a) Profit & Loss Appropriation A/c
b) Capital Account
c) Profit & Loss A/c
d) Balance Sheet

cabd

A partnership firm calculated net profit by preparing profit & loss A/c. This net profit is transferred to profit & loss appropriation A/c to find out divisible profit which is distributed between partners. Capital Accounts are made by the firm after the profit and loss appropriation A/c and at last balance sheet is prepared to know the financial position of the firm.