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 repairs of ₹50,000 were wrongly debited to the vehicle account on 1st May,2017, then what will be the correct profit for calculating goodwill for particular year?

₹1,05,000 loss

The correct answer is option 4- ₹1,05,000 loss.

Wrongly debit makes the profit of the year higher, so it will be deducted from the profit of that year. As there is loss in the particular year so it is added in the loss.
PROFIT OF 2018 = 55,000 loss
CORRECT loss= (55,000) LOSS + 50,000
                           = ₹1,05,000 (LOSS)