Partnership Appropriation Account Contents Steps:

• Identify purpose: Records allocation of partnership profits to partners per agreement.
• List typical entries: Includes interest on capital, partner salaries, and profit shares.
• Exclude non-appropriation items: Interest on partner loans and drawings go in profit/loss or current accounts.
• Match to options: Selects only profit division items (1: interest on capital; 2: salaries).

Why B is correct:

• Appropriation account specifically allocates profits via interest on capital and salaries, before residual profit sharing (per partnership accounting standards).

Why the others are wrong:

• A: Includes 3 (likely interest on loans), which is in profit/loss account, not appropriation.
• C: Includes 4 (likely drawings), recorded in current accounts, not appropriation.
• D: Excludes 1 and 2, omitting core profit allocation items.

Final answer: B