Which of the following does not appear in the Profit & Loss Appropriation Account?

Salary/Commission to a partner.

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Salary/Commission to a manager.

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Interest on capital of a partner.

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Interest on loan of a partner.

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(a) & (c).

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Solution

The correct option is A Salary/Commission to a manager.
A Profit and loss Appropriation account is an account which is prepared after profit and loss account and is usually prepared by partnership firms for distribution/allocation of profit earned by the firm to partners. Salary/commission to manager is an item of Profit and loss account. Only items relating to partners will be entered in Profit and loss Appropriation like interest on capital, profit, interest on drawings, salary/commission to partners.

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