The deed provides both interest on capital and partner salary. On which side of the Profit and Loss Appropriation Account are these shown?

Correct answer: Debit side

The governing concept is the distinction between a charge against profit and an appropriation of profit. Interest on a partner’s capital and salary allowed to a partner are normally appropriations when they are provided under the partnership agreement. After net profit is transferred to the Profit and Loss Appropriation Account, these amounts are debited there because they reduce the residual profit available for distribution among partners. Thus option A is correct. They are not credited as income, they are not recorded on both sides merely because two items are involved, and they do not disappear from the accounts. The exact treatment can depend on the agreement and applicable rules, but under the stated deed-based partnership context the debit-side treatment is the intended answer.