Calculate the value of goodwill as on 1st April, 2015, on the basis of `2(1)/(2)` year's purchase of the average profits of the last five years. The profits and losses for the years ending 31st March were : 2010 Rs. 80,000, 2011 Rs. 1,00,000, 2012 Loss Rs. 30,000, 2013 Rs. 1,70,000, 2014 Rs. 1,60,000 and 2015 Rs. 1,80,000. You are informed that the profits of the year ending 31st March 2014 included profit on sale of a fixed asset amounting to Rs. 50,000 and the profits for the year 2015 were effected by a loss due to fire amounting to Rs. 20,000.

Answer

Rs. 2,75,000

Explanation

Profit for the year 2010 will be ignored.