Fictitious assets

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Irfan Khan

Irfan Khan (Querist)

21 June 2014 What is fictitious assets? what is the treatment of such assets?

Sandeep Dharar

Sandeep Dharar (Expert)

21 June 2014 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.

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Rupesh Jain

Rupesh Jain (Expert)

21 June 2014 fictitious assets : have no physical existence only show in books. it may be goodwill, patent, copyright etc.

and exp. of company formation exp. and expenses of company before starting the commercial production of the company.

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