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Define fictitious assets?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 rohith asked over 2 years ago

Hi, Explain me about the fictitious assets?

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11 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Surbhi answered about 2 years ago

Definition. 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.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 acharya answered over 2 years ago

Fictitious assets are written off against the firm’s earnings in more than one accounting period. Basically, they are amortized over a period of time. They are recorded as assets in financial statements only to be written off later.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered over 2 years ago

Examples of Fictitious Assets • Promotional expenses of a business • Discount allowed on issue of shares • Loss incurred on issue of debentures

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered over 2 years ago

Fictitious assets are written off against the firm’s earnings in more than one accounting period. Basically, they are amortized over a period of time. They are recorded as assets in financial statements only to be written off later. Examples of Fictitious Assets • Promotional expenses of a business • Discount allowed on issue of shares • Loss incurred on issue of debentures

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Pankaj answered over 2 years ago

Fictitious assets are not assets at all however they are shown as assets in the financial statements only for the time being. In fact, they are expenses & losses which for some reason couldn’t be written off during the accounting period of their incidence. Fictitious assets are written off against the firm’s earnings in more than one accounting period. Basically, they are amortized over a period of time. They are recorded as assets in financial statements only to be written off later. Examples of Fictitious Assets • Promotional expenses of a business • Discount allowed on issue of shares • Loss incurred on issue of debentures

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered over 2 years ago

> Define fictitious assets --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 are called fictitious assets. --Fictitious assets also have no physical existence but they only include the assets having the nature of deffered revenue expenditures viz, deffered advertisement expenses, discount on issue of shares or debentures. --These are the assets out of which benefit or profit for more than one accounting is availed. --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. -- Examples of fictitious expenses are preliminary expenses not written off, discount on issue of debentures not written off.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 HIMANSHU answered over 2 years ago

Fictitious assets are those assets which are created or brought into accounts books by accounting entry, in other words these assets are not tangible assets in the sense that fictitious assets cannot be seen and also fictitious assets have no real value unlike intangible assets like goodwill which have value attached to them. Some Examples of fictitious assets are Discount which is given by the company when it issue shares, Preliminary expenses etc….

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Picsjoin 2017224123730582 Archana answered over 2 years ago

Hie Rohith, **DEFINITION OF FICTITIOUS ASSETS** - 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.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered over 2 years ago

Fictitious assets are not assets at all however they are shown as assets in the financial statements only for the time being. In fact, they are expenses & losses which for some reason couldn’t be written off during the accounting period of their incidence. Fictitious assets are written off against the firm’s earnings in more than one accounting period. Basically, they are amortized over a period of time. They are recorded as assets in financial statements only to be written off later.

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Open uri20170510 32134 1c996lj?1494421732 Anil answered over 2 years ago

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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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Suhag answered over 2 years ago

Hiiii.. **FICTITIOUS ASSEST** Fictitious assets are not assets at all however they are shown as assets in the financial statements only for the time being. In fact, they are expenses & losses which for some reason couldn’t be written off during the accounting period of their incidence. Fictitious assets are written off against the firm’s earnings in more than one accounting period. Basically, they are amortized over a period of time. They are recorded as assets in financial statements only to be written off later. **Examples of Fictitious Assets** • Promotional expenses of a business • Discount allowed on issue of shares • Loss incurred on issue of debentures Fictitious assets are shown in the balance sheet on the asset side under the head “Miscellaneous Expenditure”.

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