Following information is available about the business of a firm: Profits : In 2022, ₹ 40,000; In 2023, ₹ 50,000; In 2024, ₹ 60,000 Non-recurring income of ₹ 1,000 is included in the profits of 2023

Following information is available about the business of a firm:

(i) Profits : In 2022, ₹ 40,000; In 2023, ₹ 50,000; In 2024, ₹ 60,000, (ii) Non-recurring income of ₹ 1,000 is included in the profits of 2023, (iii) Profits of 2022 have been reduced by ₹ 6,000 because goods were destroyed by fire, (iv) Goods have not been insured but it is throught to insure them in future. The insurance premium is estimated at ₹ 400 per year, (v) Reasonable remuneration of the proprietor of business is ₹ 6,000 per year, but it has not been taken into account for calculation of above mentioned profits, (vi) Profits of 2024 include ₹ 5,000 income on investment.

Goodwill is agreed to be valued at two year’s purchase of the weighted average profits of the past three years. The appropriate weights to be used are :-
2022 :- 1: 2023 :- 2; 2024 :- 3.

[Ans. Value of Goodwill ₹ 90,200.]