Appropriation Account  

Definition of Appropriation account: An appropriation account shows the various ways that company funds have been used. For example funds may have been split between investment, tax payments, making external loans or distribution of dividends.

Appropriation accounts are also undertaken by organisations such as local councils and charities.

Profit and loss appropriation account.

For a limited company they have may appropriated profit. Any unappropriated profit will be carried forward as a balance on the profit and loss account. It appears in the balance sheet at the end of the period, as part of reserves and will be carried forward as the opening balance on the appropriation account for the next period.

 

 

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