Partnership Appropriation Account Items

Steps:

• Identify appropriation account purpose: divides net profit among partners after prior charges.
• List debits: interest on drawings (deducts from profit share) and partners' drawings (reduces capital allocation).
• Exclude non-appropriation items: interest on loans (business expense in P&L account).
• Match choices: only A includes exact debits without extras.

Why A is correct:

• Partnership accounting rules debit interest on drawings and partners' drawings to the appropriation account to fairly adjust profit distribution.

Why the others are wrong:

• B omits partners' drawings, incomplete for full appropriation.
• C wrongly includes interest on loans, a P&L expense not in appropriation.
• D excludes partners' drawings and adds irrelevant interest on loans.

Final answer: A