Amitabh and Babul are partners sharing profits in the ratio of $3:2$, with capitals of $\text{Rs. }50,000$ and $\text{Rs. }30,000$ respectively. Interest on capital is agreed @ $6\%$ p.a. Babul is to be allowed an annual salary of $\text{Rs. }2,500$. Manager is to be allowed commission @ $5,000$. Amitabh has also given a Loan on April 01 , 2019 of $\text{Rs. }50,000$ to the firm without any agreement. During the year 2019-20, the profits earned is $\text{Rs. }22,250$. Profit and Loss Appropriation account shows balance of the Profit and Loss A/c (Net profit before Babul's salary) amounted to:

To trace the amount transferred to the Profit and Loss Appropriation Account, we must deduce the real Net Profit after deducting charges against profits (Manager's Commission and Interest on Partner's Loan) from the gross earned trading profit.Gross Profit Earned: $\text{Rs. }22,250$ Manager's Commission (Charge against profit): $\text{Rs. }5,000$ Interest on Amitabh's Loan (Charge against profit): Since there is no written clause or agreement, statutory provision dictates a $6\%$ p.a. interest rate.
$$\text{Interest on Loan}=50,000\times 6\%=\text{Rs. }3,000$$
Now, let's deduct these items from the earned trading profit to arrive at the net balance:
$$\text{Net Profit for P\&L Appropriation A/c}=\text{Gross Profit}-\text{Manager’s Commission}-\text{Interest on Partner’s Loan}$$
$$\text{Net Profit for P\&L Appropriation A/c}=22,250-5,000-3,000=\text{Rs. }14,250$$
(Note: Interest on Capital and Partner's Salary are internal appropriations of profit, so they appear inside the P&L Appropriation Account itself, not before transferring the balance).