A and B are partners sharing profits and losses in the ratio of 5 : 3. ON 1st April, 2019, C is admitted to the partnership for 1/4th share fo profits. For this purpose, goodwill is to be valued at two years' purchase of last three years' profits (after allowing partners' remuneration). Profits to be weighted 1 : 2 : 3, the greatest weight being given to last year. Net profit before partners' remuneration were: 2016 - 17 : Rs. 2,00,000, 2017 - 18 : Rs. 2,30,000, 2018 - 19 : Rs. 2,50,000. The remuneration of the partners is estimated to be Rs. 90,000 p.a. Calculate ammount of goodwill.

Answer

Goodwill - Rs. 2,90,000.