Question Practice

Which entry is made when transferring net profit to the Profit and Loss Appropriation Account?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA

Single Answer MCQ

Q-00082043

Profit and Loss A/c Dr. to Profit and Loss Appropriation A/c

Profit and Loss Appropriation A/c Dr. to Profit and Loss A/c

Interest on Capital A/c Dr. to Capital A/c

Salary to Partner A/c Dr. to Capital A/c

Video Explanation

Watch Video Solution

Keep Practising

Students who asked this also explored

Continue with nearby questions to strengthen the same chapter concept while you still have the context fresh in mind.

Q1.

What is a partnership and what are its chief characteristics?

Q2.

Explain the main provisions of the Indian Partnership Act 1932 that are relevant to partnership accounts in the absence of a partnership deed.

Q3.

What is the primary purpose of a partnership deed?

Q4.

If a partnership deed is silent on the profit-sharing ratio, how should profits be shared?