Query_Fictitious Assets??

Fictitious Assets are those assets which do not have any realizable value/ sale value, Not even scrap value. They are generally shown under the head "Misc. Expenditure" in Balance Sheet(Assets side)

Hindi mein bole toh---- woh assets jisko bechne pe koi paisae nahin miltae..

E.g:- Discount on issue of shares/debentures, P&L A/c( Dr. balance)

Originally posted by : Faiz Ahmed
	Fictitious Assets are those assets which do not have any realizable value/ sale value, Not even scrap value. They are generally shown under the head "Misc. Expenditure" in Balance Sheet(Assets side) Hindi mein bole toh---- woh assets jisko bechne pe koi paisae nahin miltae.. E.g:- Discount on issue of shares/debentures, P&L A/c( Dr. balance)

and one more example preliminary expenses 

Might be u got the confusion why this is given in asset side

the answer is "all debit balances accounts are shown in assets side and all credit balances are shown in liabilities side "

though Fictitious assets dont give any return but since it have debit balance it is shown in asset side.

and it is written off for the same reason (no return )

Now u can refer .....

Fictitious Assets are those assets which do not have any realizable value/ sale value, Not even scrap value. They are generally shown under the head "Misc. Expenditure" in Balance Sheet(Assets side)

Hindi mein bole toh---- woh assets jisko bechne pe koi paisae nahin miltae..

E.g:- Discount on issue of shares/debentures, P&L A/c( Dr. balance)

Thank you very much Faiz Ahmed, Sahis and Ankur..

My doubt is solved.

Fictitious assets means bogus assets(dummy assets). even though they are reflected in the assets side but are not the assets in the real sense..... examples are already given by Mr. Faiz Ahmed...

Actually,as per Accountancy rules,all Credits are 'Sources of Funds'.

All Debits are 'Application's of the same.

Preliminary expenses is a classic example where Application of funds have been made.

The realisation vale,however,is nil.