Items in Profit and Loss Appropriation Account

1. Salaries and Wages: The salaries and wages paid to the partners for their services rendered to the firm are included in the profit and loss appropriation account. This is an essential expense that needs to be accounted for accurately.

2. Interest on Capital: The interest on capital invested by the partners in the firm is also included in the profit and loss appropriation account. This interest is calculated based on the agreed-upon rate and the amount of capital invested by each partner.

3. Interest on Drawings: If partners withdraw funds from the partnership for personal use, the interest on these drawings is charged to the profit and loss appropriation account. This helps in determining the true profit of the firm.

4. Share of Profit or Loss: The share of profit or loss of each partner is calculated and included in the profit and loss appropriation account. This ensures that each partner receives their fair share of the profits or bears their share of the losses.

5. Commission to Partners: If any partner is entitled to a commission for specific services rendered or responsibilities undertaken, this commission is included in the profit and loss appropriation account. It is important to accurately calculate and record these commissions.

6. Any Other Appropriations: Any other items that need to be appropriated, such as bonuses, reserves, or donations, are also included in the profit and loss appropriation account. These appropriations help in determining the final profit or loss of the firm.