Calculate goodwill of a firm on the basis of three years' purchase of the Weighted Average Profit of the last four years. The profits of the last four financial years ended 31st March, were: 2016 र 25,000; 2017 र 27,000 ; 2018 र 46,900 and 2019 र 53,810 . The weights assigned to each year are: 2016 1; 2017 2 ; 2018 3 ; 2019 4. You are supplied the following information:i On 1st April, 2016, a major plant repair was undertaken for 乏 10,000 which was charged to revenue. The said sum is to be capitalised for goodwill calculation subject to adjustment of depreciation of 10 % on Reducing Balance Method.ii The Closing Stock for the years ended 31st March, 2017 and 2018 were overvalued by र 1,000 and チ 2,000 respectively.iii To cover management cost an annual charge of र 5,000 should be made for the purpose of goodwill valuation.

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