Partnership Appropriation Accounting Steps:

• Review partnership financial statements: Income statement shows trading profit before appropriations; appropriation account divides profit among partners.
• Evaluate statement 1: Interest on capital is an appropriation of profit, not an expense in the income statement—incorrect.
• Evaluate statement 2: Interest on drawings is treated as additional income to the partnership, added to net profit in the appropriation account—correct.
• Note missing statement 4 and evaluate statement 3: Partners' salaries are appropriations in the appropriation account, not expenses in the statement of financial position (balance sheet)—incorrect; insufficient details for full analysis.

Why B is correct:
Not enough information (statement 4 omitted, preventing confirmation of pairs).

Why the others are wrong:

• A includes incorrect statement 1.
• C and D reference undefined statement 4.

Final answer: Not enough information.