Partnership Distributable Profit After Adjustments Steps:

• Combine profit from operations and interest credited to capital accounts: 16000 + 15000 = 31000
• Deduct interest on bank loan as an expense: 31000 - 14000 = 17000
• Deduct drawings as partner withdrawals: 17000 - 7000 = 10000

Why B is correct:

• It equals the net balance available for division per partnership accounting, adjusting operating profit with capital interest (appropriation added to pool), minus loan expense and drawings.

Why the others are wrong:

• A. 6000: Incorrectly subtracts excessive amounts without adding capital interest to the profit pool.
• C. 12000: Arises from partial adjustments, like omitting drawings or misapplying loan interest.
• D. 17000: Omits deduction for drawings after initial adjustments.

Final answer: B