Data Structure
Networking
RDBMS
Operating System
Java
MS Excel
iOS
HTML
CSS
Android
Python
C Programming
C++
C#
MongoDB
MySQL
Javascript
PHP
Physics
Chemistry
Biology
Mathematics
English
Economics
Psychology
Social Studies
Fashion Studies
Legal Studies
- Selected Reading
- UPSC IAS Exams Notes
- Developer's Best Practices
- Questions and Answers
- Effective Resume Writing
- HR Interview Questions
- Computer Glossary
- Who is Who
What are fictitious assets in finance?
Fictitious assets are the assets which has no tangible existence, but are represented as actual cash expenditure. The main purpose is to create this account for expenses which are not placed in any account headings.
In other words, fictitious means fake or not real, these are not assets at all but they show in financial statements. Expenses incurred in starting a business, goodwill, patents, trademarks, copy rights comes under expenses which cannot be placed any headings.
- Fictitious assets have no physical existence.
- No realisable value.
- They are amortised in one or more profitable financial years.
Examples
- Promotional marketing expenses.
- Underwriting commission.
- Preliminary expenses.
- Discount allowed on shares.
- Loss incurred (issue of debentures).
| Liabilities | Amount | Assets | Amount |
|---|---|---|---|
| Capital and reserves | Current assets | ||
| Long term liabilities | |||
| Non – current assets | |||
| Current liabilities | |||
| Investments | |||
| Misc. Expenditure | |||
| Total | Total |
Updated on: 12-Aug-2020
1K+ Views
Advertisements