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