X and Y are partners in a firm sharing profit and losses in the ratio of 3 : 2 with capitals of RS.1,20,000 and RS.80,000 respectively. Interest on capital is allowed @ 10%. They admit Z into the partnership with effect from 1st January, 2019 on the following terms:
(i) Z is to bring in RS.10,000 for his share of cash.
(ii) Z is to contribute RS.1,25,000 as his share of capital.
(iii) Partners' capital will carry interest @ 12% p.a.
(iv) New profit-sharing ratio of X, Y and Z will be 9 : 6 : 4.
(v) X will be entitled to 5% commission on the net profit.
(vi) The profit for the year ended 31st March, 2019 before providing for X's commission and interest on partners' capital amounted to RS.80,000.
Prepare profit and Loss Appropriation Account for the year ended 31st March, 2019.

Explanation