**Profit and Loss Appropriation Account for the year 2023**

Heading 1: Introduction
In this question, we have X, Y, and Z as partners in a firm. They divide the profits and losses in the ratio of 3:2:1. Y is allowed an annual salary of Rs 42,000, and Z gets a commission at the rate of 3% on sales, which amounts to Rs 12,00,000. The firm earned a profit at the rate of 10% on total sales in the year 2023. We need to prepare a profit and loss appropriation account for the year.

Heading 2: Calculation of Net Profit
To calculate the net profit of the firm, we need to deduct the salary and commission expenses from the total profit earned.

Net Profit = Total Profit - (Salary + Commission)

Heading 3: Calculation of Total Profit
The total profit of the firm can be calculated by multiplying the total sales by the profit percentage.

Total Profit = Total Sales * Profit Percentage

Heading 4: Calculation of Total Sales
The total sales can be calculated by dividing the commission received by the commission rate.

Total Sales = Commission / Commission Rate

Heading 5: Calculation of Commission
The commission can be calculated by multiplying the total sales by the commission rate.

Commission = Total Sales * Commission Rate

Heading 6: Calculation of Salary
The salary of Y can be calculated by multiplying the annual salary by the profit percentage.

Salary = Annual Salary * Profit Percentage

Heading 7: Profit and Loss Appropriation Account
Once we have calculated the net profit, we can prepare the profit and loss appropriation account.

**Profit and Loss Appropriation Account for the year 2023**

| Particulars | Amount (Rs) |
|-------------|-------------|
| Net Profit | |
| - Salary | |
| - Commission| |
|-------------|-------------|
| Remaining Profit | |
| - X's Share | |
| - Y's Share | |
| - Z's Share | |
|-------------|-------------|
| Total Appropriation | |

Heading 8: Calculation of Net Profit
Using the formulas mentioned above, we can calculate the net profit.

Net Profit = Total Profit - (Salary + Commission)

Heading 9: Calculation of Total Profit
The total profit can be calculated using the profit percentage and total sales.

Total Profit = Total Sales * Profit Percentage

Heading 10: Calculation of Total Sales
Total Sales can be calculated by dividing the commission received by the commission rate.

Total Sales = Commission / Commission Rate

Heading 11: Calculation of Commission
The commission can be calculated by multiplying the total sales by the commission rate.

Commission = Total Sales * Commission Rate

Heading 12: Calculation of Salary
The salary of Y can be calculated by multiplying the annual salary by the profit percentage.

Salary = Annual Salary * Profit Percentage

Heading 13: Calculation of Remaining Profit
To calculate the remaining profit after deducting X's, Y's, and Z's shares, we subtract their respective shares from the net profit.

Remaining Profit = Net Profit - (X's Share + Y's Share + Z's Share)

Heading 14: Calculation of X's Share
X's share can be calculated by multiplying the remaining profit by X's profit ratio.

X's Share = Remaining Profit * X's Profit Ratio

Heading 15: Calculation of Y's Share