A and B were partners in a firm sharing profits equally. Their capitals were: A: ₹1,20,000 and B: ₹80,000.

The annual rate of interest is 20%., Profits of the firm for the last three years were ₹34,000; ₹38,000 and ₹30,000. They admitted C as a new partner. On C’s admission the goodwill of the firm was valued at 2 years’ purchase of the super profits.

Calculate the value of goodwill of the firm on C’s admission.