Which items are not shown in profit and loss appropriation account?

Are you looking for the items which are not shown in profit and loss appropriation account as per the Accounting for partnership firm- fundamentals chapter of class 12 Accountancy CBSE Board.

See, profit and loss appropriation account is prepared to distribute net profit among partners in various heads.

For example such net profit arising from profit and loss account is distributed among partners as

1. Interest on capital
2. Salary to partners
3. Commission to partners
4. To show Reserves

After allocating profits into above heads remaining profit is distributed among partners in their profit sharing ratio.

But there are certain items that are concerned with partners but are not recorded in profit and loss appropriation account. rather these items are not considered as appropriations.

Items not recoded in profit and loss appropriation account.

There are very famous three items that are not recorded in profit and loss appropriation account.

1. Managers commission
2. Rent to partner
3. Interest on loan of partner to firm
4. Interest on loan by firm to partner

Items which are considered as charge against profit

Managers commission is considered as charge against profit and is debited to profit and loss account.

Rent to partner is also considered as charge against profit and is debited to profit and loss account.

Interest on loan to partner to firm is also considered as charge against profit and is debited to profit and loss account.

Items which are considered as income

Interest on loan by firm to partner is considered as income and credited to profit and loss account.

S.N	Topics
1.	Definition of Partnership
2.	Features of Partnership
3.	What are the Rights of Partners
4.	What is Partnership Deed, Meaning, content
5.	What are the Rules in the absence of a Partnership Deed
6.	What are the Rules in the absence of Partnership Deed
7.	What are the Liabilities of Partners
8.	Profit and Loss Appropriation Account format, features
9.	Journal Entries of Profit and Loss Appropriation A/c
10.	Difference between Profit and Loss A/c and Profit and Loss Appropriation A/c

S.N	Topics
11.	Difference between charge against profit and appropriation of Profit
12.	Treatment of Interest on loan by the firm to the partner
13.	Treatment of Interest on loan by the Partner to the firm
14.	Treatment of Rent paid to partner in partnership firm
15.	Accounting Treatment of Managers commission in partnership
16.	Items not shown in Profit and Loss Appropriation A/c
17.	Methods of Maintaining Partners Capital A/c
18.	Accounting Treatment When Appropriation is more than the Available Profit
19.	Difference Between Fixed Capital A/c and Fluctuating Capital A/c
20.	Difference Between Capital and Current A/c