Which item will go to the Profit and Loss Account and not to the Profit and Loss Appropriation Account?

Correct answer: Interest on partner's loan

Direct answer: Option A, interest on partner’s loan. The Profit and Loss Account records expenses incurred to find the firm’s net profit. The Profit and Loss Appropriation Account shows how that already-earned profit is distributed or appropriated among partners. Interest on a partner’s loan is paid because the partner has lent money to the firm; it is treated as an expense before net profit is determined. Step 1: calculate profit after charging loan interest. Step 2: transfer the resulting profit to the appropriation account. Option A is correct because loan interest is a charge against profit. Option B, salary to partner, is normally an appropriation when it is paid for the partner’s services under the deed. Option C, interest on capital, is normally an appropriation of profit. Option D, commission to partner, is also normally dealt with as an appropriation. The classification can depend on specific legal or deed conditions, but under the standard Class 12 partnership treatment, A is the intended answer. Memory cue: loan interest comes before appropriation; partner salary, commission and capital interest usually come after profit is found.