Which of the following accounts is NOT included in the trial balance of a partnership?
Practice Questions
1 question
Q1
Which of the following accounts is NOT included in the trial balance of a partnership?
Partner's Capital Account
Partner's Current Account
Drawings Account
Profit and Loss Appropriation Account
The Profit and Loss Appropriation Account is not included in the trial balance as it is prepared after the trial balance.
Questions & Step-by-step Solutions
1 item
Q
Q: Which of the following accounts is NOT included in the trial balance of a partnership?
Solution: The Profit and Loss Appropriation Account is not included in the trial balance as it is prepared after the trial balance.
Steps: 4
Step 1: Understand what a trial balance is. A trial balance is a list of all the accounts in the ledger with their balances, used to check that total debits equal total credits.
Step 2: Know what accounts are included in a trial balance. Common accounts include cash, accounts receivable, accounts payable, and capital accounts.
Step 3: Identify the Profit and Loss Appropriation Account. This account shows how profits are distributed among partners and is prepared after the trial balance.
Step 4: Conclude that since the Profit and Loss Appropriation Account is prepared after the trial balance, it is NOT included in the trial balance.
