Question on: JAMB Accounting - 2023
The account where the profits are distributed to the partner in their profit sharing ratio in partnership
A
appropriation account
B
profit and loss account
C
balance sheet
D
trading account
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Correct Option: A
The appropriation account is the account in a partnership where profits are distributed to the partners in their profit-sharing ratio. It records the allocation of profits for various purposes such as partners' salaries, interest on capital, and any other special or agreed-upon allocations before the remaining profit is distributed to the partners according to their profit-sharing ratio.
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