What is the Fictitious assets?

Showing Answers 1 - 21 of 21 Answers

tanuja

  • Jun 18th, 2006
 

these assets are bogus assets.

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Tejinder Khatkar

  • Aug 18th, 2006
 

These are like intangible assets which cannot be seen or touched. Actually these are not assets but some expenditures which cannot trf to profit and loss account of a particular perid that is why these items are shown on assets side of balance sheet to be written off to P&L account in reasonable years

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daeswar

  • Oct 21st, 2006
 

Fictitious Assets are not assets which are tangible and visible like buildings, machinery , computer but the expenditure on some activity which is considered as a Capital expenditure instead of Revenue expenditure. When expenditure incurred amount is not debited to Profit and Loss A/C but shown as Fictitious asset and over a period the amount is writtenoff or debited to Pand L account. For example Share issue expenses by a Corporate, This is not debited to P& L A/c in the year in which it is incurred but debited in instalments as decided by Management over few years.  

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daeswar

  • Oct 21st, 2006
 

Fictitious assets are the expenses incurred by a Corporate which are not charged to P& L A/c in the same year like Share Issue and Management expenses,These expenses are charged to Pand L A/C over a period of 3 to 5 years. As assets cannot be seen physically but the benefit of such expenditure spreads over a period such expenses are known as Fictitious assets

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govi

  • Oct 27th, 2006
 

Ficticious assets are imaginary assets, they are not real.

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anu

  • Dec 1st, 2006
 

they are the assets which cannot be visible

for example :  prelimenary expenses

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Sandeep

  • Jul 7th, 2007
 

There are certain expenditures/expenses, the benefit of which is not limited to one particular year. Therefore, the whole of these expenses cannot be charged to the profit and loss account at once and hence they are deferred.

For e.g. Share Issue Expenses, Discount of Issue of Debentures, etc.

Also the debit balance of Profit and Loss Account (loss) is a Fictitious Asset. It is to be cancelled out or adjusted with profit of subsequent years or reserves.

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ARVIND VERMA

  • Dec 12th, 2011
 

Fictitious assets are those assets which we cannot touch and see that means fictitious assets are intangible assets.

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VIJEN PAINULY

  • Jan 10th, 2012
 

Fictitious assets are not assets these are capital expenditure which is done by owner before starting the business its benefits long term so we say it is assets like advertising

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pushpa c bonal

  • Jun 7th, 2012
 

These are not the assets in reality, but are shown as such under certain occasions for exp advt exp not yet written off , promotional exp

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Rajkumar

  • Jun 10th, 2012
 

These are assets not represented by tangible possession or property . eg: preliminary expenses

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satish kumar

  • Jun 24th, 2012
 

These assets are not real assets, these assets are only imaginary assets.

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chetan arora

  • Jul 29th, 2012
 

This is a heavy expenditure.it can not be transfer to p&l ac.so this is way it goes in balance sheet in Assets side.ex-advertisement exp.

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Mohammad Solaiman

  • Jul 31st, 2012
 

This is not a real assets. This is just created for accurate calculation of Profit or Loss of an organization. Mostly these expenses incurs before commencement of a business.
Amortization of Fictitious Assets are: (Take Preliminary Exp as fictitious assets as example)
PL Account Dr
to Preliminary Expense.
In the balance sheet, the amount will be deducted from the Asset-Preliminary Expense

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sudhakar

  • Aug 26th, 2012
 

It is an asset which we does not exist but represent cash expenditure such as miscellaneous expenditure.

sameer husain

  • Sep 6th, 2012
 

fictitious asset is not a asset...its a heavy expenditure when a company start..and that y he not showing in p&l account..because its showing p&l this effected balance sheet.heavy loss.that's why its show in asset side in balance sheet....

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himani verma

  • Sep 11th, 2012
 

Fictitious assets are not real assets.this is obtained just for the calculation of profit and loss of organization and these are not represented as an tangible assets.

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General Accounting Information

  • Sep 28th, 2012
 

1. Fictitious assets are not real assets, these assets are only imaginary assets.
2. Fictitious are assets not represented by tangible possession or property. Eg: preliminary expenses

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Arvind chandela

  • Oct 24th, 2012
 

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 firms earni

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chelu

  • Feb 21st, 2014
 

fictitious assets are called intangible asset, the assets which is not having physical presence and which cannot touch it, only we can feel and realize. Ex: Goodwill, copy rites and patents etc.,

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Narasimhaprasad K

  • Feb 24th, 2014
 

Fictitious Asset mean is an asset which can added as advantage for instance a preliminary expenses for registration of asset and copy right and trade mark expenses is called fictitious Asset...

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