Classifiaction of assets
This query is : Resolved
14 September 2013
Can Someone tell me what is fictitious assets?
Some examples of Fictitious Assets
Some examples of Fictitious Assets
CMA Ramesh Krishnan
(Expert)
16 September 2013
Fictitious assets is the asset which is created without the actual existence of the same
CA Pallav Singhania
(Expert)
16 September 2013
Asset created by an accounting entry (and included under assets in the balance sheet) that has no tangible existence or realizable value but represents actual cash expenditure.
The purpose of creating a fictitious asset is to account for expenses (such as those incurred in starting a business) that cannot be placed under any normal account heading. Fictitious assets are written off as soon as possible against the firm's earnings.
E.g.
like preliminary expenses,
Debit balance of profit and loss account,
Patent,
Trade mark,
Copy right,
Discount on issue of shares
The purpose of creating a fictitious asset is to account for expenses (such as those incurred in starting a business) that cannot be placed under any normal account heading. Fictitious assets are written off as soon as possible against the firm's earnings.
E.g.
like preliminary expenses,
Debit balance of profit and loss account,
Patent,
Trade mark,
Copy right,
Discount on issue of shares
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