Accounting – 5.2 Partnerships | e-Consult
5.2 Partnerships (1 questions)
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Appropriation Account
| Dividends | £20,000 |
| Retained Earnings | £30,000 |
Explanation: The appropriation account shows the distribution of the company's profit. The £50,000 profit is divided into dividends (£20,000) and retained earnings (£30,000). This demonstrates the company's decision to balance shareholder returns with future investment needs.