Accounting treatment for Goodwill

Hello sir/madam,

 

I have one question relating to Goodwill or Intellectual property rights?

This is an practical one, one of the company  has purchased the proprietory concern (sale to a co). In this case company paid Rs 70 lacs as goodwill (as per agreement of sale deed). while finalizing the accounts of the co how this goodwill be recognized. Proprietory concern is an Hospital. can we treat this goodwill paid in cash as intellectual property? can we capitalize this? can we claim depreciation on this as intangible asset? 

Please suggest me. I am final CA Student.

I want to know the accounting treatment in the books of company regarding this.

 

Advance thanks.

 

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