Commerce Exam > Commerce Videos > Crash Course for Commerce > Profit and Loss Appropriation Account - Video 2
Profit and Loss Appropriation Account - Video 2 Video Lecture | Crash Course for Commerce
|
485 videos
|
FAQs on Profit and Loss Appropriation Account - Video 2 Video Lecture - Crash Course for Commerce
| 1. What is a profit and loss appropriation account? |  |
Ans. A profit and loss appropriation account is a statement that shows how the profits or losses of a partnership firm are distributed among the partners. It includes items such as interest on capital, salary to partners, commission, and any other appropriations made by the partners.
| 2. Why is a profit and loss appropriation account important for a partnership firm? | |
Ans. A profit and loss appropriation account is important for a partnership firm as it helps in determining how the profits or losses of the firm are shared among the partners. It provides transparency and accountability in the distribution of profits and helps in maintaining a clear record of the financial transactions related to partner's remuneration, interest, and other appropriations.
| 3. How is a profit and loss appropriation account prepared? | |
Ans. A profit and loss appropriation account is prepared by taking the net profit or loss of the partnership firm and distributing it among the partners according to the agreed terms and conditions mentioned in the partnership deed. The account starts with the net profit or loss figure and then includes items such as interest on capital, salary to partners, commission, and any other appropriations made by the partners. The account is closed by transferring the balance to the partners' capital accounts.
| 4. What are the common items included in a profit and loss appropriation account? | |
Ans. The common items included in a profit and loss appropriation account are interest on capital, salary to partners, commission, and any other appropriations made by the partners. These items represent the distribution of profits or losses among the partners based on their agreed terms and conditions mentioned in the partnership deed.
| 5. How does a profit and loss appropriation account affect the partners' capital accounts? | |
Ans. The profit and loss appropriation account affects the partners' capital accounts by transferring the net profit or loss to their respective capital accounts. If the firm has made a profit, the profit is added to the partners' capital accounts, increasing their capital balances. On the other hand, if the firm has incurred a loss, the loss is deducted from the partners' capital accounts, reducing their capital balances. This ensures that the partners' capital accounts reflect their share in the profits or losses of the partnership firm.
Related Exams
About this Video
|
4.98/5 Rating |
|
Dec 27, 2024 Last updated |
Video Description: Profit and Loss Appropriation Account - Video 2 for Commerce 2024 is part of Crash Course for Commerce preparation.
The notes and questions for Profit and Loss Appropriation Account - Video 2 have been prepared according to the Commerce exam syllabus.
Information about Profit and Loss Appropriation Account - Video 2 covers all important topics for Commerce 2024 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for Profit and Loss Appropriation Account - Video 2.
Introduction of Profit and Loss Appropriation Account - Video 2 in English is available as part of our Crash Course for Commerce for Commerce & Profit and Loss Appropriation Account - Video 2 in
Hindi for Crash Course for Commerce course. Download more important topics related with notes, lectures and mock test series for
Commerce Exam by signing up for free.
Description
Video Lecture & Questions for Profit and Loss Appropriation Account - Video 2 Video Lecture | Crash Course for Commerce - Commerce full syllabus preparation | Free video for Commerce exam to prepare for Crash Course for Commerce.
Information about Profit and Loss Appropriation Account - Video 2
Here you can find the meaning of Profit and Loss Appropriation Account - Video 2 defined & explained in the simplest way possible.
Besides explaining types of Profit and Loss Appropriation Account - Video 2 theory, EduRev gives you an ample number of questions to practice Profit and Loss Appropriation Account - Video 2 tests,
examples and also practice Commerce tests.
|
485 videos
|
|
Explore Courses for Commerce exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Exam
,Semester Notes
,Profit and Loss Appropriation Account - Video 2 Video Lecture | Crash Course for Commerce
,practice quizzes
,study material
,Free
,ppt
,Important questions
,Extra Questions
,shortcuts and tricks
,Profit and Loss Appropriation Account - Video 2 Video Lecture | Crash Course for Commerce
,mock tests for examination
,past year papers
,Previous Year Questions with Solutions
,MCQs
,Summary
,video lectures
,Viva Questions
,Objective type Questions
,Profit and Loss Appropriation Account - Video 2 Video Lecture | Crash Course for Commerce
,Sample Paper
;
Study Profit and Loss Appropriation Account - Video 2 on the App
Students of Commerce can study Profit and Loss Appropriation Account - Video 2 alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Profit and Loss Appropriation Account - Video 2,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Profit and Loss Appropriation Account - Video 2 is prepared as per the latest Commerce syllabus.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup