asset

This query is : Resolved

Report Abuse Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

28 December 2010 what is fictitious asset

CS LLB Pulkit Gupta

CS LLB Pulkit Gupta (Expert)
Follow

28 December 2010 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

Querist : Anonymous

Querist : Anonymous (Querist)

28 December 2010 can u give me any example

Upgrade to CAclubindia Pro. Subscribe Now!

CS LLB Pulkit Gupta

CS LLB Pulkit Gupta (Expert)
Follow

28 December 2010 Yes . All the preliminary exps. for e.g. Discount on issue of shares & Debentures or debit balance of Income Statement .