Profit and Loss Account

The profit and loss account is exactly as the one for the sole trader and in addition to the profit and loss account, a new section called the appropriation account is included and this account shows how the partners share the Net Profit for the period. (In addition to other expenses in the profit and loss, an expense for interest on loan given by one of the partners is included and the credit entry is made on the partner’s current account) The format for the Appropriation account is as follows:

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