Partner salaries and interest are not costs of running the business, they are rewards for being a partner! And, the appropriation account has one job – to divide the monies between partners. Interest is dedicated there, alongside any partner salaries!
If you want to know more and work through a worked example then you need to read Richard Sharp’s great piece (on page 24) in the latest PQ magazine, out now: https://digital.magmanager.co.uk/Reader/Index/2884158
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