Difference between profit and loss suspense account and profit and loss appropriation account ?
PROFIT AND LOSS SUSPENSE account is prepared when profit is given to retiring partner or deceased partner who retire or die during the the year.
It is given on the basis of previous year profit or sale.
whereas P/L APPROPRIATION A/C is prepared at the end of year to distribute the net profit available to the existing partner,
It is given on the basis of previous year profit or sale.
whereas P/L APPROPRIATION A/C is prepared at the end of year to distribute the net profit available to the existing partner,