Question

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 1

The Correct Option is A

The correct sequence is Trading Account → Profit and Loss Account → Profit and Loss Appropriation Account → Balance Sheet.
Hence, the correct answer is Option 1.