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Commerce · Q298

Accounting

Graduate and Post Graduate · Commerce · question 298

Q298

Which of the following appears in the profit and loss appropriation account?

A.
Interest on debentures
B.
Dividend
Answer
C.
Provision for taxation
D.
Provision for bad debts

Answer: Option B

Solution

Answer: Option B
Solution:
Dividend appears in the profit and loss appropriation account. The main intention of preparing a profit and loss appropriation account is to show the distribution of profits among the partners.