Read the following information and answer the question.

A and B are partners sharing profits equally. They admit C into partnership for equal share with a guaranteed profit of ₹20,000 per year. The books of the firm revealed following information-
Profits of the last 4 years is:
2016- ₹70,000
2017- ₹1,00,000
2018- ₹55,000 (loss)
2019- ₹1,45,000

If firm had incurred abnormal loss of ₹35,000 for the year 2017, then what will be the net profit for particular year for calculating goodwill?

₹1,35,000

The correct answer is option 4- ₹1,35,000.

Abnormal loss is added back to find out net Profit of 2017
Profit in 2017 = ₹1,00,000
Add: Abnormal loss = ₹35,000
Net profit = 1,00,000 + 35,000
               = ₹1,35,000