Which of the following are part of Profit & Loss Appropriation Accoun…

The correct answer is Option (4) → B & D only

B. Interest on partner’s capital – an appropriation of profit; shown in the P&L Appropriation Account.

D. Salary to partner – an appropriation of profit; shown there too.

A. Rent to partner – a charge against profit (the firm uses the partner’s property); it goes to the Profit and Loss Account.

C. Interest on partner’s loan – a charge against profit, payable even if there is a loss; Profit and Loss Account.

E. Commission to Manager – the manager is an employee, so it is an expense; Profit and Loss Account.