define appropriation of profit.
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Appropriation means distribution. So, Appropriation of profits means distribution of profits. For this purpose a separate account is prepared by partnership firm which is known as Profit and Loss Appropriation Account. All those items which decreases the profit are debited to this account and all those items which increases the profit are added to this account.
However, this topic is extensively covered in the study material provided to you on our site. To view link given below.
https://www.meritnation.com/cbse/class12-commerce/studymaterial/accountancy/partnership-accounts/accounting-for-partnership--basic-concepts/435_2429_5864#slide2_profit-and-loss-appropriation-account
If you still find any difficulty,then do get back to us. We will help you in the best possible way.
Appropriation means distribution. So, Appropriation of profits means distribution of profits. For this purpose a separate account is prepared by partnership firm which is known as Profit and Loss Appropriation Account. All those items which decreases the profit are debited to this account and all those items which increases the profit are added to this account.
However, this topic is extensively covered in the study material provided to you on our site. To view link given below.
https://www.meritnation.com/cbse/class12-commerce/studymaterial/accountancy/partnership-accounts/accounting-for-partnership--basic-concepts/435_2429_5864#slide2_profit-and-loss-appropriation-account
If you still find any difficulty,then do get back to us. We will help you in the best possible way.