In which account is the salary paid to partners shown before the distribution of profits?

Correct answer: Profit and Loss Appropriation Account

Partner salary is treated as an appropriation of profit and is shown in the Profit and Loss Appropriation Account (usually recorded on the debit side of that account as an appropriation). The Trading Account shows gross result (sales and cost of goods), the Profit & Loss Account shows net profit, and the Appropriation Account shows how that net profit is distributed. Cash Account only records the payment transaction, not the accounting appropriation; Purchases Account relates to purchases. Exam tip: remember the sequence Trading → P&L → P&L Appropriation to decide where items are recorded.