fictitious assets

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Ram Prakash Gautam

Ram Prakash Gautam (Querist)

14 June 2010 dear frnds,

plz comment it .

What is fictitious assets?

thanx & regards
ram prakash

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

14 June 2010
Fictitious assets are those assets created by an accounting entry that has no tangible existence or realizable value but represents actual cash expenditure.

Ram Prakash Gautam

Ram Prakash Gautam (Querist)

14 June 2010 thanx sir

Ram Prakash Gautam

Ram Prakash Gautam (Querist)

14 June 2010 warrier sir,

plz expln it in detail & give an example

Rahul Gupta

Rahul Gupta (Expert)

14 June 2010 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.

For example > Discount on issue of shares, Preliminary Expenses.

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