Arrange the following in sequence of the final Accounts for a Partnership firm.(A) Profit and Loss Account(B) Partner's Capital Account(C) Trading Account(D) Balance Sheet(E) Profit and Loss Appropriation AccountChoose the correct answer from the options given below:
- A(C), (A), (E), (B), (D)
- B(C), (E), (A), (B), (D)
- C(E), (C), (A), (B), (D)
- D(E), (A), (C), (B), (D)
Solution & Step-by-step Explanation
The preparation workflow for the final financial statements of a partnership firm follows this sequence:Trading Account (C) yields Gross Profit.Profit and Loss Account (A) yields Net Profit.Profit and Loss Appropriation Account (E) distributes net profit among partners.Partner's Capital Account (B) updates partner balances.Balance Sheet (D) presents the final financial position.The correct sequence is (C), (A), (E), (B), (D).