Ipcc student
332 Points
Joined October 2010
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)