Puneet and Tarun are in restaurant business having credit balances in their fixed Capital Accounts as ₹2,50,000 each. They have credit balances in their Current Accounts of ₹30,000 and ₹20,000 respectively.

The firm does not have any liability. They are regularly earning profits and their average profit of last 5 years is ₹1,00,000. If the normal rate of return is 10%, find the value of goodwill by Capitalisation of Average Profit Method.