Define: Appropriation Accounts

UK 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.

What is the dictionary definition of Appropriation Accounts?

Dictionary Definition


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.


Appropriation Accounts FAQ's

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Modern Language Association (MLA):
Appropriation Accounts. Payroll & Accounting Heaven Ltd. November 20, 2019
Chicago Manual of Style (CMS):
Appropriation Accounts. Payroll & Accounting Heaven Ltd. (accessed: November 20, 2019).
American Psychological Association (APA):
Appropriation Accounts. Retrieved November 20, 2019, from website:

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This glossary post was last updated: 26th December 2018.