Partnership Accounts : Goodwill- Concept and Valuation

Goodwill is the value of

Goodwill is the value of the reputation of a firm that enables it to earn higher profits than normal profits earned by other firms in the same trade.

Lord Eldon defined goodwill as

Lord Eldon defined goodwill as the probability that old customers will resort to the old place. Lord Lindley described it as benefit arising from conn

Goodwill is an intangible asset

Goodwill is an intangible asset. It cannot be seen or touched, but it can be felt. It is not a fictitious asset. It cannot be sold separately from the

Purchased goodwill arises when one business

Purchased goodwill arises when one business is purchased by another and the purchase price exceeds the net assets acquired. It is recorded in the book

Nature of business

Nature of business, location, market situation, management efficiency, special incentives, capital required, risk involved, future competition, and na