Sara, Tara and Zara are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. They decide to take Dara into partnership from 1st April, 2019 for 1/4th share in the profits. For this purpose, goodwill is to be valued at twice the average annual profit of the previous three or four years, whichever is higher.
The annual profits for the purpose of goodwill for the past four years were:
`{:("Year Ended",,"Rs."),("31st March, 2019",," 48,000,"),("31st March, 2018",," 30,000,"),("31st March, 2017",," 31,200,"),("31st March, 2016",," 42,000".):}`
Calculate value of goodwill.

Explanation

Four years' average profit is higher than three years' average profit.
Therefore, Value of Goodwill will be two times of Rs. 37,925, i.e., Rs. 37,925 `xx` 2 = Rs. 75,850.