According to the profit and loss account, the net profit for the year is Rs. 1,50,000. The total interest on partner’s capital is Rs. 18,000 and, interest on partner’s drawings is Rs. 2,000. The net profit as per profit and loss appropriation account will be

Rs. 1,66,000
Rs. 1,70,000
Rs. 1,30,000
Rs. 1,34,000

The correct answer is: C. Rs. 1,30,000

The net profit as per profit and loss appropriation account is calculated by deducting the total interest on partner’s capital and interest on partner’s drawings from the net profit for the year.

In this case, the net profit for the year is Rs. 1,50,000. The total interest on partner’s capital is Rs. 18,000 and, interest on partner’s drawings is Rs. 2,000. Therefore, the net profit as per profit and loss appropriation account is:

Net profit = Net profit for the year – Total interest on partner’s capital – Interest on partner’s drawings

= Rs. 1,50,000 – Rs. 18,000 – Rs. 2,000

= Rs. 1,30,000

The other options are incorrect because they do not take into account the total interest on partner’s capital and interest on partner’s drawings.