Double Entry Book Keeping (Section A)-ISCX2.12Illustration 8 (Weighted Average Profit Method when Past Adjustments are Made).Akhil and Nikhil are partners sharing profits equally. They adnutted Dinesh into partnershipwas agreed to value goodwill at three years purchase following Weighted Average Profit Methoon the basis of past five years' profits. Weights assigned to each year would be - years ende31st March, 2016-1, 2017-2, 2018–3, 2019-4 and 2020-5. The profits for these years were:31st March, 2019Year Ended31st March, 202031st March, 20183150 March 201631st March, 20171,50,000Profits1,75,0001,25,00080,00090.000Scrutiny of books of account revealed the following:1. There was an abnormal loss of 15,000 during the vear ended 31st March, 2016.2. There was an abnormal gain of 10,000 during the year ended 31st March, 20183. Closing Stock as on 31st March, 2019 was overvalued by * 15,000.Calculate value of goodwill.Solution:​