A3:Differences between Profit and Loss Account and Profit and Loss appropriation account.

Profit & Loss  Account	Profit & Loss Appropriation Account
Profit and loss account is a statement that shows the quantum of surplus funds available to thr entity at the end of a financial period.	profit and loss appropriation account gives you details about how the surplus that is shown in the profit and loss account is going to be spent.
Profit and loss account is a standalone statement	the profit and loss appropriation account is an extension of the former.
Profit and loss account is mandatory for all entities- partnerships, companies etc	while the appropriation account is usually prepared only by partnership firms.
	P&L appropriation account usually gives details about how the surplus money is going to be spent- I mean how much of it goes to each partner, how much is to be invested in capital expenditure, how much to be used as earmarked reserves etc.
Profit and loss account let's you how much profit or loss you are have earned from your business	Profit and loss Appropriations account tell you how much you have received Salary, commission or interest from the Business.
Profit and loss account is made when there is loss or profit in the company .It is made after trading account.	profit and loss appropriation is made when there is only profit in the company . It is an extension to profit and loss account
Profit and loss  account contain items which are charge against the profit .	profit and loss appropriation account are appropriations of profit
Profit and loss account follows the matching principle ( revenue =expenses) .	in profit and loss appropriation account , this principle is not followed.
Profit and loss account neither have opening or closing balances.	profit and loss appropriation account contains both opening and closing balances