Distinguish between charge against profit and appropriation of profit

Basis of Difference Charge against/on Profits Appropriation of Profits
Meaning This implies the deduction of expenses from the profits in order to compute net profit/net loss during the accounting year. This implies the distribution of available net profits left out after providing all expenses.
Compulsion It is a compulsory or mandatory obligation that a firm has to bear. It is not compulsory in nature.
Situation   It is provided under all circumstances- irrespective of profits or losses. It is provided only in case a firm has profits (and not in case of losses).
Relevant Accounts It is recorded (debited to) the Profit and Loss Account. It is recorded (debited to) the Profit and Loss Appropriation Account.
Effect It affects net profit. It does not net profit.
Accounting Order It is done before all appropriations of items. It is done after all charges of items.

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