If Profit and Loss Appropriation Account has net profit on credit side and salary on debit side what does the balance show?

Correct answer: Remaining profit for distribution

The Profit and Loss Appropriation Account starts with net profit on its credit side. Amounts such as partners’ salary, commission, and interest on capital are appropriations of that profit, so they are placed on the debit side. After these appropriations are deducted, the balance represents the profit that is still available for distribution among the partners. It is not the original gross profit, a bank loan, or a customer balance.

Thus, choice A is correct: the balance shows the remaining profit for distribution. For example, if net profit is ₹100,000 and salary appropriations total ₹20,000, the remaining ₹80,000 is distributed according to the agreed profit-sharing ratio, after considering any other required appropriations. The account therefore explains how net profit is applied among partners. The supplied answer is accurate, although the exact distribution would require the ratio and all relevant adjustments.