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Guest (Querist)

11 July 2008 in a internal reconstruction what is the meaning of continngent liabilities . & why we write off goodwill as it is not a fictious assets , it is a intangible assets .in a reconstruction account there is any credit side balance . if this situation is satisfied so where we t/f the balance capital reserve or any other account

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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12 July 2008 Any liability the occurrence of which depends upon the happening of an event is Contingent liability.

Good will written off over a period because it is intangible not backed by any tangible asset. Also though its existence is certain value is perception-
based.