Explanation:

- The Profit and Loss Account shows a net profit of Rs 1,40,000 for the year.

- Interest on partner’s capital is Rs 8,000, which is an appropriation and reduces net profit.

- A partner's commission of Rs 5,000 also reduces net profit.

- Interest on partner’s drawings is Rs 1,200, which increases net profit as it is credited.

- Final calculation for the Profit and Loss Appropriation Account:

- Start with Rs 1,40,000

- Subtract Rs 8,000 (interest on capital)

- Subtract Rs 5,000 (commission to partner)

- Add Rs 1,200 (interest on drawings)

- Correct net profit: Rs 1,28,200

Therefore, Option: 1, Rs 1,28,200 is correct.