Fictitious Assets

Fictitious assets means , asset which are not represented by anything concrete ,there is no tangible property . For example preliminary Expenses , Commission or brokerage on under writing shares etc .

Fully agree with above comment

As preliminary expenses , commission, brokerage etc. are expenses so why we are taking it into asset

We are showing under asset because ,we have to written off such type of Expense in the coming years and balance carried forward to next year for write off i.e preliminary expense incurred at time of incorporation of company is to be written off as per section 35(d) of the Income tax act 1961 within stipulated time period.

I just  want correct my second reply  above preliminary expense can be written off  within five year , however as per section 35 of the income Tax act , total  preliminary expense can not be more than 5 % of the capital employed , which can be amortized  in  five equal  installment .   

Prasad is correct

Hi Saurav what happened and not cominf anymore? It was nice in the old days. Fictious assets? Who cares about interviews anymore when you dont get a job as a CEO?