Concept:In partnership accounts, profit or loss is the balance after deducting all genuine business expenses from gross profit.Explanation:Partners’ salaries and interest on capital are not expenses; they are appropriations of the profit already earned.Interest on loans is different because it is a charge against profit, like any other finance cost.It must be paid even when the partnership makes no profit.Therefore, it is deducted from gross profit together with other expenses to determine profit or loss.Partners’ drawings are not expenses at all; they are just reductions of capital.Answer:C. Interest on loans.