If commission is payable to a partner on which side of Profit and Loss Appropriation Account will it appear?

Correct answer: Debit side

A partner’s commission is an amount of profit assigned to that partner under the partnership agreement. It is not an ordinary business expense incurred to earn revenue; it is an appropriation of profit. The Profit and Loss Appropriation Account shows such appropriations on its debit side, because they reduce the profit remaining for distribution among the partners. The partner’s account is then credited with the commission allowed.

Therefore option A is correct. The commission payable to a partner is debited to the Profit and Loss Appropriation Account and credited to the partner’s capital or current account. A credit-side entry in the appropriation account would generally represent items such as net profit brought from the Profit and Loss Account or other credits, not commission paid to a partner. This treatment applies when the commission is based on the partnership agreement.