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Divya purchased Jyoti's business with effect from 1st April, 2019. Profits shown by Jyoti's business for the last three financial years were:
2016-17 : 1,00,000 including an abnormal gain of 12, 500
.2017-18 : 1,25,000 after charging an abnormal lossof 25, 000
.2018-19 : 1,12,500 excluding 12, 500as insurance premium on firm′s property − now to be insured
.Calculate the value of firm's goodwill on the basis of two year's purchase of the average profit of the last three years.
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