Journal Entries Related to Profit and Loss Appropriation Accou

1. Transfer of profit or loss from Profit & Loss A/c to Profit & Loss Appropriat

or

2. For charging Interest on Drawings

(i)

(ii)

3. For allowing Interest on Capitals

(i)

(ii)

4. For Partners' Salaries/Commission

(i)

(ii)

5. For transfer of Profit to Reserve

 6. For transfer of credit (Distrubutable Profit) or debit (Loss) balance of Profit & Loss A

or
 Journal Entries Related to Profit and Loss Appropriation Account

1. Transfer of profit or loss from Profit & Loss A/c to Profit & Loss Appropriation A/c
Profit & Loss A/c
To Profit & Loss Approprition A/c
( Profit transferred )
Profit & Loss Appropriation A/c
To Profit & Loss A/c
( Loss transferred )

2. For charging Interest on Drawings

Partners' Capital or Current A/c
To Interest on Drawings A/c
( Interest charged on drawings )
Interest on Drawings A/c
To Profit & Loss Approprition A/c
( Interest charged on drawings transferred to Profit & Loss Appropriation A/c )

3. For allowing Interest on Capitals

Interest on Capital A/c
To Partners' Capital or Current A/c
( Interst allowed on capital )
Profit & Loss Appropriation A/c
To Inetrest on Capital A/c
( Interest allowed on capital transferred to Profit & Loss Appropriation A/c )

4. For Partners' Salaries/Commission

Partners' Salary or Commission A/c
To Partners' Capital or Current A/c
( Salaries or Commission allowed to partners )
Profit & Loss Appropriation A/c
To Partners' Salary or Commission A/c
( Salaries or Commission allowed to partners transferred to Profit & Loss Appropriation A/c )

5. For transfer of Profit to Reserve

Profit & Loss Appropriation A/c
To Reserve A/c
( Amount transferred to Reserve )
 6. For transfer of credit (Distrubutable Profit) or debit (Loss) balance of Profit & Loss Appropriaton A/c
Profit & Loss Appropriation A/c
To Partners' Capital or Current A/c
( Balance Profit transferred to Capital or Current A/c of partners in their profit sharing ratio )
Partners' Capital or Current A/c
To Profit and Loss Appropriation A/c
( Loss transferred to Capital or Current A/c of partners in their profit sharing ratio )
Dr.

Dr.

Dr.

Dr.

Dr.

Dr.

Dr.

Dr.

Dr.
Dr.

Dr.
 Profit and Loss Appropriation Account
Dr. for the year ended …..
Date Particulars J.F. Amount ₹ Date
To Profit and Loss A/c
( Net Loss )
To Interest on Capital :
A 40,000
B 22,000
To Partner's Salaries 40,000
To Partner's Commissions
To Reserve
To Profit transferred to :
A's Capital or Current A/c 57,060
B's Capital or Current A/C 38,040
197,100
ropriation Account
ended ….. Cr.
Particulars J.F. Amount ₹
By Profit and Loss A/c 196,000
( Net Profit )
By Interest on Drawings :
A 600
B 500
By Loss transferred to :
A's Capital or Current A/c
B's Capital or Current A/c

197,100
 Partners' Capital Account
Dr. for the year ended…..
Date Particulars J.F. A₹ B ₹ Date
To Balance c/d
To Cash/Bank A/c
To Drawings A/c
To Interest on Drawings A/c
To Profit & Loss A/c
To Balance c/d
s' Capital Account
e year ended….. Cr.
Particulars J.F. A₹ B ₹
By Balance b/d
By Cash/Bank A/c
By Interest on Capital
By Commission A/c
By Partner's Salary A/c
By Profit & Loss Appropriation A/c
 Partners' Capital Account
Dr. for the year ended…..
Date Particulars J.F. A₹ B ₹ Date
To Cash or Bank A/c
( Drawingw against
Capital )
To Balance c/d

Partners' Capital Account

Dr. for the year ended…..
Date Particulars J.F. A₹ B ₹ Date
To Balance b/d
To Drawings A/c
To Interest on Drawings A/c
By Profit & Loss A/c
To Balance c/d
s' Capital Account
e year ended….. Cr.
Particulars J.F. A₹ B ₹
By Balance b/d
By Cash or Bank A/c
( Additional Capital )

s' Capital Account

e year ended….. Cr.
Particulars J.F. A₹ B ₹
By Balance b/d
By Interest on Capital A/c
By Commission A/c
By Partner's Salary A/c
By Profit & Loss Appropriation A/c