21. The purpose of preparation of Profit and loss appropriation account is: a. To know the balance of goodwill of each partner b. To know the share of profit or loss of each partner c. To know the balance of capital of each partner d. To know the balance of drawings of each partner

21. The purpose of preparation of Profit and loss appropriation account is: a. To know the balance of goodwill of each partner b. To know the share of profit or loss of each partner c. To know the balance of capital of each partner d. To know the balance of drawings of each partner

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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21. The purpose of preparation of Profit and loss appropriation account is:

To know the balance of goodwill of each partner

To know the share of profit or loss of each partner

To know the balance of capital of each partner

To know the balance of drawings of each partner

Definition Definition Amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item

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