Query - what is the difference?

A/c entries 814 views 8 replies

Please let me know the difference between P & L adjustment account and P & L  appropriation account.

 

Thanks.

Replies (8)

P & L Appropriation A/c is prepared at the time of finalisation of accounts to show appropriation (Distribution) of profits.

P & L Adjustment A/c is prepared after finalisation of accounts to rectify any error in the accounts or to give retrospective effects for some adjustments.

Eg.: For valuation of goodwill some adjustments are made in final accounts i.e. to record expenses.

 

 

I am agree with the above aswr

agree with ketan

further

adjustment is the  modification of calculated profit

raher appropriation is the distribution of final profit among the retain earnings & distributed dividends

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Originally posted by : Ketan Kumar G Shah
P & L Appropriation A/c is prepared at the time of finalisation of accounts to show appropriation (Distribution) of profits.
P & L Adjustment A/c is prepared after finalisation of accounts to rectify any error in the accounts or to give retrospective effects for some adjustments.
Eg.: For valuation of goodwill some adjustments are made in final accounts i.e. to record expenses.
 
 


 

Thank you all

Further P/l appropriation account is made in every case , but adjustment is made in case o rectification of mistake

 

Thanks Ms.Anshika for your reply.
 

Please let me know why a jounal entry is not passed to rectify a mistake, if there are any.

What is the need for P & L adjustment A/c?

Thanks.

 

 

 

THANKS TO ALL FOR KNOWLEDGE!!!!


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