PQR Co. Ltd. intends to purchase the business of ABC Co. Ltd. Goodwill for their purpose is agreed to be valued at 3 years’ purchase of the weighted average profits of the past four years. The appropriate weights to be used :

2012 ---- 1, 

2013 ---- 2, 

2014 ---- 3 

2015 ---- 4. 

The profits for these years were : 

2012 ---- ₹30,900; 

2013 ---- ₹45,400; 

2014 ---- ₹35,700; 

2015 ---- ₹48,000. 

The following information were available :

(i) On 1.9.2013, a major repair was made in respect of a plant at a cost of ₹8,000 and this was charged to revenue. The said sum is agreed to be capitalised for goodwill calculation subject to adjustment of depreciation of 10% p.a. on diminishing balance method.

(ii) The closing stock for the year 2014 was overvalued by ₹3,000.

(iii) To cover the management cost an annual charge of ₹10,000 should be made for the purpose of goodwill. You are asked to compute the value of goodwill of the company.