Profits are (₹80000), (₹60000), (₹70000). First year had abnormal loss of (₹15000). What is the correct first year profit for average profit?

Correct answer: (₹95000)

Direct answer: Option A, ₹95,000. The first year shows a reported profit of ₹80,000, but that year also contains an abnormal loss of ₹15,000. An abnormal loss is not expected to occur regularly, so it should be added back while finding the maintainable or adjusted profit for goodwill. Step 1: take the reported first-year profit of ₹80,000. Step 2: add back the abnormal loss of ₹15,000 because it had reduced the reported profit unusually. Step 3: adjusted first-year profit = ₹80,000 + ₹15,000 = ₹95,000. Option A is correct. Option B, ₹65,000, wrongly subtracts the abnormal loss again. Option C, ₹80,000, leaves the unusual loss adjustment out. Option D, ₹15,000, is only the abnormal loss and not the adjusted profit. The other years would remain ₹60,000 and ₹70,000 unless the question gives further adjustments. Memory cue: abnormal loss lowered the reported profit, so add it back; abnormal gain is usually deducted.