Define Goodwill
Good will:- Good will is an intangible asset but not fictitious. Although it is not tangible asset like plant and machinery, Buildings etc, nevertheless it contributes to the profit earnings capacity of the business. Goodwill is valuable asset if the business concern is profitable, but if the business is suffering from continuous, it is valueless. Good will is defined as an element arising in which enables it to earn greater profits than the return normally to be expected in the capital represented by the net tangible assets employed in the business. According to Kohler's " goodwill is the current value of expected future income in excess of a normal return on investment in net tangible assets". It is treated as an intangible asset in accounts . It is sometimes described as a momentum or a push that keeps the business going without further effort like the momentum of a boby continues its motion against a retarding force till it comes to rest gradually.