Identify the correct sequence for finding out divisible Profit & Loss for a Partnership Firm manufacturing Steel pipes:(A) Transfer amount to general reserve, as per requirement.(B) Allow interest on capital and charge interest on drawing.(C) Transfer of the balance of profit and loss account to profit and loss appropriation A/c(D) Find out the balance amount to be distributed among partners.Choose the correct answer from the options given below:

To prepare the Profit and Loss Appropriation Account and arrive at the net distributable profit:First, transfer the net profit balance from the primary Profit & Loss Account over to the P&L Appropriation Account (C).Record partners' explicit internal provisions: credit Interest on Capital and debit Interest on Drawings (B).Set aside any allocations to a General Reserve from the appropriation pool if mandated (A).Compute the residual balance to find out final divisible profit to distribute to partners' accounts (D).Hence, the sequence is (C), (B), (A), (D).