Explanation:

- Start with the net profit from the Profit and Loss Account: ?2,00,000.

- Add the total interest on partner’s drawings: ?1,000, increasing the amount to ?2,01,000.

- Subtract A’s salary: ?40,000 annually.

- Subtract B’s salary: ?3,000 per month, which totals ?36,000 annually.

- The total salaries for A and B combined are ?76,000 (?40,000 + ?36,000).

- Thus, the net profit as per the Profit and Loss Appropriation Account is ?2,01,000 - ?76,000 = ?1,25,000.

Option 2: ?1,25,000 is the correct answer.

.