GCEFinancial AccountingCompany Accounts2023

Which of the following items would appear in a company's appropriation account?

ADepreciation of plant and machinery
BDirectors' remuneration
CTransfer to general reserveCORRECT
DProvision for doubtful debts
AI
Toaster Teacher
Why the answer is C, and why the others tempt you.
The appropriation account deals with the distribution of net profit after tax, including transfers to reserves and proposed dividends. Transfer to general reserve is an appropriation of profit. Depreciation, directors' remuneration, and provision for doubtful debts are all charged in the income statement (profit and loss account) before arriving at net profit.
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