question_answer

Vinod and Rishi are partners. They admit Kamlesh as a new partner for \[1/{{5}^{th}}\] share. For this purpose, The Goodwill of the firm to be calculated on the basis of 3 years purchase of last 5 years profits. The profits/loss for the last five years were:

Year	2016-17	2017-18	2018-19	2019-20	2020-21
Profit	50,000	40,000	75,000	(25,000)	50,000
	Profit	Profit	Profit	loss	Profit

The Profit of 2017-18 was calculated after charging Rs. 10,000 for abnormal loss of goods by fire. The Goodwill of the firm will be:

A) 40,000 

B) 80,000

C) 1,20,000

D) 1,50,000