Toly Ltd. proposed to purchase the business carried on by Sonu on 31st March, 2018. For the purpose of valuation of goodwill the weights to be used and book profits for past four years were as follows: Year Weight Profit

Toly Ltd. proposed to purchase the business carried on by Sonu on 31st March, 2018. For the purpose of valuation of goodwill the weights to be used and book profits for past four years were as follows: Year Weight Profit (₹) 2014-15 1 70,40,000 2015-16 2 95,50,000 2016-17 3 68,30,000 2017-18 4 1,04,20,000 On the scrutiny of the accounts the following matters were revealed: On 1st December, 2016 a major repair was made in respect of plant incurring ₹25,20,000 and was charged to Profit and Loss Account. The said sum is agreed to be capitalized for the purpose of calculation of goodwill subject to adjustment of yearly depreciation @ 10% per annum on reducing balance method. The closing stock for the year 2015-16 was overvalued by ₹8,60,000. To cover management cost an annual charge of ₹17,50,000 was not made. Average capital employed in the Sonu's business was ₹4,50,00,000 and normal rate of returns on similar business is 12%. You are required to calculate the value of the goodwill of Sonu's business on the basis of 5 years purchase of superprofit.