**Introduction**:
Interest on drawings refers to the interest charged by a business to its partners or proprietors for withdrawing funds from the business for personal use. It is important to account for interest on drawings separately from the actual drawings made by partners, as it is a way to allocate the cost of using business funds for personal purposes. The interest on drawings is usually recorded in the profit and loss appropriation account rather than the drawings account. This distinction is made to accurately reflect the impact of interest on the overall profitability and financial position of the business.

**Reasons for entering interest on drawings in profit/loss appropriation account**:

1. **Maintaining Separate Accounts**: By keeping the interest on drawings separate from the drawings account, businesses can clearly distinguish between the principal amount withdrawn by partners and the interest charged on those withdrawals. This separation allows for accurate tracking and analysis of both components.

2. **Allocation of Costs**: The interest on drawings represents an additional cost or expense incurred by the business due to the personal use of its funds. Including the interest in the profit and loss appropriation account helps in allocating this cost against the profits generated by the business. It ensures that the partners are accountable for the financial burden created by their withdrawals.

3. **Impact on Profit Distribution**: The profit and loss appropriation account is used to determine the distribution of profits among partners. By including interest on drawings in this account, the impact of the interest expense on the overall profitability of the business is considered. This ensures that partners who withdraw more funds and incur higher interest costs receive a smaller share of the profits.

4. **Disclosure and Transparency**: The profit and loss appropriation account is a comprehensive statement that reflects all the adjustments made to the net profit of the business. Including interest on drawings in this account enhances transparency by providing a clear and complete picture of the financial transactions related to partners' withdrawals.

5. **Tax Implications**: In some jurisdictions, interest on drawings may be treated as a deductible expense for tax purposes. By recording the interest in the profit and loss appropriation account, businesses can accurately calculate and report their taxable income, taking advantage of any tax benefits associated with interest expenses.

**Conclusion**:
Recording interest on drawings in the profit and loss appropriation account rather than the drawings account is essential for accurate financial reporting, cost allocation, profit distribution, transparency, and tax compliance. It allows businesses to effectively track and manage the impact of interest expenses on their overall financial position and profitability.