Can anyone please let me know which are the fictitious assets??
Along with some examples??
Faiz Ahmed
( Article Trainee)
(1731 Points)
Replied 05 November 2010
Fictitious Assets are those assets which do not have any realizable value/ sale value, Not even scrap value. They are generally shown under the head "Misc. Expenditure" in Balance Sheet(Assets side)
Hindi mein bole toh---- woh assets jisko bechne pe koi paisae nahin miltae..
E.g:- Discount on issue of shares/debentures, P&L A/c( Dr. balance)
sahis
(CA Final,BBA)
(164 Points)
Replied 05 November 2010
| Originally posted by : Faiz Ahmed | ||
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Fictitious Assets are those assets which do not have any realizable value/ sale value, Not even scrap value. They are generally shown under the head "Misc. Expenditure" in Balance Sheet(Assets side) Hindi mein bole toh---- woh assets jisko bechne pe koi paisae nahin miltae.. E.g:- Discount on issue of shares/debentures, P&L A/c( Dr. balance) |
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and one more example preliminary expenses
Ankur
(Ipcc student)
(332 Points)
Replied 05 November 2010
Might be u got the confusion why this is given in asset side
the answer is "all debit balances accounts are shown in assets side and all credit balances are shown in liabilities side "
though Fictitious assets dont give any return but since it have debit balance it is shown in asset side.
and it is written off for the same reason (no return )
Now u can refer .....
Fictitious Assets are those assets which do not have any realizable value/ sale value, Not even scrap value. They are generally shown under the head "Misc. Expenditure" in Balance Sheet(Assets side)
Hindi mein bole toh---- woh assets jisko bechne pe koi paisae nahin miltae..
E.g:- Discount on issue of shares/debentures, P&L A/c( Dr. balance)
Resham
(Carpe Diem !!!)
(6535 Points)
Replied 05 November 2010
Thank you very much Faiz Ahmed, Sahis and Ankur..
My doubt is solved.
Azim Khan ACA,CS,CMA*,LLB*
(Proprietor)
(1312 Points)
Replied 05 November 2010
Fictitious assets means bogus assets(dummy assets). even though they are reflected in the assets side but are not the assets in the real sense..... examples are already given by Mr. Faiz Ahmed...
CA.Subhankar
(Accounts & Finance)
(65 Points)
Replied 06 November 2010
Actually,as per Accountancy rules,all Credits are 'Sources of Funds'.
All Debits are 'Application's of the same.
Preliminary expenses is a classic example where Application of funds have been made.
The realisation vale,however,is nil.
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