Q. Calculate the value of goodwill on the basis of three year's purchase of the weighted average profits of the last five years. Profits to be weighted 1, 2, 3, 4 and 5, the greatest weightage to be given to last year. Profits of the last five years were : Books of Accounts of the firm revealed that : (i) Closing Stock as on 31st March, 2015 was overvalued by 40,000. (ii) Repairs to Machinery 60,000 were wrongly debited to Machinery Account on 1st July, 2017. Depreciation was charged on Machinery @ 20\% p.a.on diminishing balance method. [Ans. Value of Goodwill 3,60,000.] Hint : Weighted Profit for the year ended 31st March 20185,16,000 and 2019 10,51,000