Calculate goodwill of the firm by weighted average profit method by assigning weights 1,2,3 respectively to the profit's years ended 2017,2018,2019 if goodwill is to be valued at 2 years purchase of last 3 years profits after allowing partners salary.
Net profit before partners salary is-
Profit of 2017- ₹200000
Profit of 2018- ₹230000
Profit of 2019- ₹250000
Salary of partners is ₹90000 p.a.

₹290000

WEIGHTED AVERAGE PROFIT = total weighted profit/ toal weights
                                           = 870000/6 = ₹145000
GOODWILL= 145000*2 = ₹290000