Final answer:
If salary and interest allowances allocated as distribution of profits exceed the net profit, it indeed results in a loss, which makes the statement true. However, in a proprietary colony, it is false that proprietors only collect profits; they had multiple responsibilities.
Step-by-step explanation:
When salary and interest allowances allocated as a distribution of profits exceed the net profit, this would indicate that the company is distributing more than what it has earned, resulting in a financial shortfall, or in other words, a loss. Therefore, if all other expenses are taken into account and the total amount distributed to proprietors and others exceeds the net profit, the statement would be true.
In the context of a proprietary colony, it is false to say that the Proprietors have no responsibilities except to collect profits. Proprietors typically had various other responsibilities, such as governing the colony, managing relations with the indigenous populations, defending, and overseeing the overall welfare and development of the colony.