B Ltd. agreed to purchase the business of a sole trader. For this purpose, goodwill is to be valued at three years' purchase of the weighted average of previous 4 years' adjusted profits. The appropriate weights to be us

B Ltd. agreed to purchase the business of a sole trader. For this purpose, goodwill is to be valued at three years' purchase of the weighted average of previous 4 years' adjusted profits. The appropriate weights to be used are—First year-1, second year-2, third year-3, fourth year-4. The profits for the last 4 years were as follows: First year : ₹20,400; Second year : ₹24,000; Third year : ₹26,200, Fourth year : ₹30,180. The following additional information is also available: (1) In the third year, on 1 st December a major repair expenditure to plant and machinery for ₹6,000 was charged to Profit & Loss A/c. This was agreed to be capitalized for goodwill subject to 10% p.a. depreciation on diminishing balance method. (2) The closing stock for the second year was over-valued by ₹1,400. (3) In order to cover cost of management, an annual charge of ₹5,000 should be made for valuation of goodwill. Compute the value of goodwill. Accounting year ending is 31 st March.