16 September 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.
E.g.
like preliminary expenses, Debit balance of profit and loss account, Patent, Trade mark, Copy right, Discount on issue of shares