Question
Accountancy Question on Partnership Accounts
Identify the correct sequence to be followed while preparing the final account of a partnership firm:
(A) Profit and Loss Appropriation Account
(B) Profit and Loss Account
(C) Trading Account
(D) Balance Sheet
A
(C), (B), (A), (D)
B
(A), (C), (B), (D)
C
(B), (A), (D), (C)
D
(C), (B), (D), (A)
Answer
(C), (B), (A), (D)
Explanation
Solution
The correct sequence is Trading Account → Profit and Loss Account → Profit and Loss Appropriation Account → Balance Sheet.
Hence, the correct answer is Option 1.