Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 15 - No. 10)
In a partnership, what is the purpose of the appropriation account?
To record the firm's income and expenses.
To allocate profits or losses among partners.
To record transactions with external creditors.
To track the partners' drawings.
Explanation
The appropriation account allocates the profit or loss of a partnership among the partners according to their agreement.
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