Raman and Daman are partners sharing profits in the ratio of 60 : 40 and for the last four years they have been getting annual salaries of Rs. 50,000 and Rs. 40,000 respectively. They annual accounts have shown the following net profit before charging partners' salaries:
Year ended 31st March , 2017 - Rs. 1,40,000, 2018 - Rs. 1,01,000 and 2019 - Rs. 1,30,000.
On 1st April, 2019, Zeenu is admitted to the partnership for 1/4th share in profit (without any salary). Goodwill is to be valued at four years' purchase of weighted average profit of last three years (after partners' salaries), Profits to be weighted as 1 : 2 : 3, the greatest weight being given to the last year.
Calculate the value of Goodwill.
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Goodwill - Rs. 1,28,000
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