If goodwill is an intangible asset …

Goodwill is not brought in cash or cheque the amount of goodwill of firm is paid by the incomimg partner as from the date of his admission he will also enjoy the goodwill of the firmi. i. e., he will also enjoy the profit of the firm occured due to goodwill of the firm.

In very simple context Agar purane partner milkar koi business chalate hai toh unki goodwill create ho jati hai market mai jisko dekh kar aisa lagta hai ki partner's ko ish goodwill ki wazah se agale kuch salo tak aise hi profit hoga Ab agar naya partner aata hai aur firm ko join karta hai toh usko ish goodwill ka benefit milne lagega kuki aage ke profit ko new profit sharing ratio mai baat lenge , isi wazah se usko aaj ish benefit ko utahane ke liye kuch amount contribute karna padega jisko kehle ki new partner goodwill laa eaha hai

Goodwill is a long-term (or non current) asset categorized as an intangible asset. Goodwill arises when a company acquires another entire business. The amount of goodwill is the cost to purchase the business minus the fair market value of the tangible assets, the intangible assets that can be identified, and the liabilities obtained in the purchase.

Sometimes, goodwill may be evaluated in case of admission of a partner, when incoming partner is unable to bring in cash any premium for goodwill. In that situation value of goodwill should not be raised in the books since it is inherent goodwill. Rather it is preferable that such value of goodwill should be adjusted through partner's capital accounts. It may also be noted that when the incoming partner pays any premium for goodwill privately to the existing partners, no entry is required in the books of the firm.