A and B were partners in a firm sharing profits equally. Their capitals were A ₹1,20,000 and B ₹80,000. The annual rate of interest 20%. The profits of the firm for the last three years were ₹34,000: ₹38,000 and ₹30,000. They admitted C as a new partner.

On C’’s admission the goodwill of the firm was valued at 2 years purchase of the super profits.

Calculate the value of goodwill of the firm on C’s admission.

Marks-3, CBSE:2022-23/Zone-2/Set-1/Q-18*