Which one of the following is not an Item of appropriation in the partnership accounts?

Interest on Loan from partner

The correct answer is Option (3) → Interest on Loan from partner.

The item that is not considered an item of appropriation in the partnership accounts is "Interest on Loan from partner." Interest on loans is usually considered a business expense rather than a distribution of profits. It is debited to profit and loss account. All other options are debited or credited to profit and loss appropriation account.

OTHER OPTIONS

Items of appropriation involve the allocation or distribution of profits among partners in a partnership.

• Interest on Capital: This is a common item of appropriation where partners are entitled to receive interest on their capital contributions to the partnership.
• Commission to Partner: Partners may receive a commission for their involvement in managing the partnership's affairs, and this is considered an item of appropriation.
• Salary to Partner: Partners may be allocated a salary for their services to the partnership, and this is also considered an item of appropriation.