Asin and Shreyas were partners sharing profits and losses in the ratio of 2:1. They admitted Shyam as a partner for 1/5th share in profits. For this purpose, Goodwill of the firm was to be valued on the basis of three years’ purchase of last five years’ average profit. Profits for the last five years ended 31st March, were:
| Year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Profits (₹) | 1,25,000 | 1,00,000 | 1,87,500 | (62,500) | 1,25,000 |
Calculate Goodwill of the firm after adjusting the following:
Profit of 2021-22 was calculated after charging 25,000 for abnormal loss being goods lost by fire.
Answer :