Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 17 - No. 13)
What's the typical order of items in an Appropriation Account?
Interest on Capital, Salaries, Profit Share
Salaries, Interest on Capital, Profit Share
Profit Share, Salaries, Interest on Capital
Salaries, Profit Share, Interest on Capital
Explanation
The typical order is to deduct interest on capital first, followed by partners' salaries, and then distribute the remaining profit based on the profit-sharing ratio.
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