Hello jigyasa,

Firstly goodwill is not fictitious . But we cannot see it but it has value in the market . It is an intangible assets which have value in the market.

Form your better understanding here is little example

Company A buys Company B for more than the fair value of Company B's assets and debts, the amount left over is listed on Company A's balance sheet as goodwill.

Hope you understand if you have any further queries comment down

All the best

Dear Aspirant,

I am going to assume that you're a commerce student and asking about goodwill in term of accounting.

Goodwill is an intangible asset associated with the purchase of one company by another. Specifically, goodwill is recorded in a situation in which the purchase price is higher than the sum of the fair value of all identifiable tangible and intangible assets purchased in the acquisition and the liabilities assumed in the process. The value of a company’s brand name, solid customer base, good customer relations, good employee relations, and any patents or proprietary technology represent some examples of goodwill.

Hope this helps. Thank you.