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Does the profit and loss appropriation account have to balance?

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Question added by britney ramnarine
Date Posted: 2018/04/09
Ahmed Ashraf
by Ahmed Ashraf , accountant , elgamal co for trading and tech.

Profit and loss account don’t have any opening or closing balance as it is prepared for a specific accounting period.

pankaj mishra
by pankaj mishra , Assistant Accountant , Dr. A.P.J. Abdul kalam technical University

P&L appropriation account is used for allocation and distribution of Net Profit among partners, reserves and dividends.

Profit and loss appropriation account may have carry forward balance from previous accounting period.

shanib ummer
by shanib ummer , Accountant , Sunrise Group

P&L Appropriation account is used for allocation of Profit. 

B/D Balance is N/P and there is no balance C/D .

Mishal Valiyaparambath Arangoth
by Mishal Valiyaparambath Arangoth , Web Based Project Assistant , Anathoth IT Solutions

expense & income a/c will not carry balance , it will be merged as profit or loss based on our sales and expenses.

Muhammad Zain
by Muhammad Zain , Accounts Officer , 3S Systems - C.GROUP

Yes, profit and loss appropriation account must be balance. 

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