8. X, Y and Z are partners sharing profits and losses in the ratio of 5 :3:2. From 1st April, 2025, they decided to share profits and losses equally. The Partnership Deed provides that in the event of any change in the profit-sharing ratio, goodwill is to be valued at two years’ purchase of the average profit of the preceding five years. The profits and losses of the preceding years ended 31st March, are:

Year

2021
2022
2023
2024
2025

Profits (₹)

70,000
75,000
55,000
35,000
10,000 (Loss)

Calculate the value of goodwill and pass Journal entry.