In profit distribution where is partner commission shown?

Correct answer: Debit in Profit and Loss Appropriation Account

Partner commission is paid to a partner out of the firm’s profit according to the partnership deed. It is therefore an appropriation of profit, not an expense incurred to purchase goods or conduct ordinary trading operations. In the Profit and Loss Appropriation Account, appropriations are recorded on the debit side because they reduce the amount of profit left for distribution. The partner’s account is credited with the commission allowed to that partner.

Accordingly, the correct choice is A: partner commission is debited to the Profit and Loss Appropriation Account. It should not be debited to the Trading Account, because it is not a direct cost of goods sold. Nor is it sales income or a stock item. If the commission is calculated on profit after commission, the calculation must first use the proper adjusted base, but its presentation remains an appropriation. The supplied answer is consistent.