Profit and Loss Appropriation Account

Accounting for Partnerships

MS: Akaun Pengasingan Untung Rugi · EN: Profit and Loss Appropriation Account · ZH: 损益分配账户

Meaning

The Profit and Loss Appropriation Account is prepared after the Profit and Loss Account to appropriate, or divide, the partnership's net profit among the partners. It records partners' salaries, interest on capital, interest on drawings and each partner's share of profit.

Example

A net profit of RM30,000 is transferred here; after deducting salaries and interest on capital, the remaining RM20,000 is shared in the ratio 1:1, giving RM10,000 each.

Source: DSKP KSSM Prinsip Perakaunan Tingkatan 5

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