15 November 2013
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.
15 November 2013
Fictitious assets are those assets which are not tangible in nature & has no value. They are not taken over in the process of M & A. They are loss assets. They are shown on the assets side as they show debit balance.
They are like preliminary expenses, P& L a/c (loss) & discount on issue of shares. asp
CAclubindia
