Appropriation Accounts

Business, Legal & Accounting Glossary

Definition: Appropriation Accounts

Quick Summary of Appropriation Accounts

These show the way that net profit is distributed (usually in the form of cash dividends) between partners in a partnership or between shareholders and reserve funds in a company.

Full Definition of Appropriation Accounts

In general accounting, Appropriation accounts are part of the income statement (profit and loss account) that explains how a firm’s profit has been used to pay dividends, and/or to increase reserves indicated in the balance sheet.

An appropriation account states what happens to any profit, instead of how it was earned and is usually detailed separately from the main statement.

Cite Term

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Modern Language Association (MLA):
Appropriation Accounts. Payroll & Accounting Heaven Ltd. September 27, 2021
Chicago Manual of Style (CMS):
Appropriation Accounts. Payroll & Accounting Heaven Ltd. (accessed: September 27, 2021).
American Psychological Association (APA):
Appropriation Accounts. Retrieved September 27, 2021, from website:

Definition Sources

Definitions for Appropriation Accounts are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 10th August, 2019 | 132 Views.