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[Music] hey guys Chris from a nap tuition here and in this video Im gonna show you how to prepare the appropriation account for a partnership so the first question you should be asking a surface well what is an appropriation account and why do we need it but simply an appropriation account shows the distribution of the profits to the partners right now why do we need it so just to think about it why do people start a business to make a profit to whom is it profit go to the owners now most of the questions you guys may have done at this point may involve sole traders this is where you have one owner and guess what if you have one or no that person is going to get all of the profit at the end of the period so when you do your income statement that net income or net profit whatever you call it is going to go to the owners capital account but if you have multiple owners we need to have a way to show the sharing of the profit between or among these people our partnership can be between tw