Hari and Krishan were partners sharing profits and lossesin the ratio of 2 1 They admitted Shyam as ...........

Hari and Krishan were partners sharing profits and lossesin the ratio of 2 : 1. They admitted Shyam as a partner for 1/5th share in the profits. For this purpose the Goodwill of the firm was to be valued on the basis of three years’purchase of last five years average profits. The profits for the last five years were :

Year           Profit (Rs.)

2013–14    50,000

2014–15    40,000

2015–16    75,000

2016–17    (25,000)

2017–18     50,000

Calculate Goodwill of the firm after adjusting the following :The profit of 2014 –15 was calculated after charging Rs.10,000 for abnormal loss of goods by fire.