what are fictious assets? give some examples?
- 39 Answers
- 302827 Views
- Capital IQ, Genpact, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / niyaz bin navaz
Fictitious assets are those assets which have no market value or which is not have physical appearnce.It represent actual cash credit and these are imaginery assets not real one.
Eg:- Priliminary exp.
Discount on issue oo shares
Advertisment exp.
Management exp.
Profit and loss (dr)
Formation exp.
| Is This Answer Correct ? | 2 Yes | 1 No |
Answer / deepak sharma....
Fictitious Assets Also known as deferred Revenue Expenses Are the Items which are not Assets in Reality....but they are shown in the assets side of Balance sheet due to their Debit balance.....
Some examples of Fictitious Assets are given below....
1) Discount on issue of shares/debentures.
2) Loss on issue of debenture.
3)P&L a/c (Dr)
4) Amalgamation
5)Preliminary Expenses
6)Underwriting of Shares/Debentures...
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / pragya
Fictitious assets are those assets which are shown in the books of accounts as like the other transaction but there is no actual cash transaction happens.
Like discount on issue of share
In this condition we will only pay the amount for the shares on discounted rates not on par ,we will receive an intangible amount as a discount ( which is not actualy been given to us in cash).
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / k.ramkumar
Fictitious assets are those which cant be debited in P&L a/c in the same year in which they are incurred.These are deffered revenue expenditure .These are intangible assets and are written off over a period of time.
Eg loss on issue on shares Management expense,Preliminary expense,Advertisement expense.
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / pradeep gunuguntla
The assets which are created by the company are called
fictious assets.
eg: preliminary expenses , differed revenue expendeture
| Is This Answer Correct ? | 7 Yes | 7 No |
Answer / nikhil tiwari
Those assets on which money is spent but are not phyaically visible are known as fictitious assets.
i.e. balance of p/l account.
| Is This Answer Correct ? | 1 Yes | 1 No |
Answer / chinmay
fictitious assets are nothing but
expenses of heavy nature that cant
be treated as a revenue expense for
a reason that those expenses will
yield income for more than one
accounting period ( deferred ) and
ignoring that expense will be
against accounting hence it is shown
as assets and written off ( some
portions) each year just like
depreciation..
examples- heavy advertisement
expenses, preliminary
expenses,discount on issue of
shares, loss on redemption of
debentures, miscellaneous
expenditure...
| Is This Answer Correct ? | 2 Yes | 2 No |
Answer / sujay
WHERE IS MY PREVIOUS ANSWER. And ask some better questions while we post our answers
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / farkhanda naz
Fictitious assets are the assets having n0 market value and can n0t be sold in the market. Like preliminary exp, discount on issue of shares. These assets are written on assets side of balance sheet and being wrotten off fr0m year t0 year nd remains in the balance sheet till their balnce bec0mes zer0.
| Is This Answer Correct ? | 0 Yes | 0 No |
How to finalise the accounts of any private limited company?
EXPAND___________LTTE
credit management as an essential component of financial management explain?
What is Accumulated Depreciation?
What is the Formula of debt equity ratio? Also Define its importance in accountancy.
What is cost accounting?
Explain about accrual basis of accounting
Give some questiong with anser with are usally ask to the interviewer in interview. Please give answer with detail.
what quick books how to prepare
What is letter of credit?
2 Answers State Bank Of India SBI,
where can i get the Balance sheet (graph) for Muthood Finance ltd. (profit and Loss sheet)
2. You are required to prepare a Profit & Loss Account for the year ending 31st December, 2007 and the Balance Sheet on that date. The Trial Balance of XYZ Ltd. for the year ended 31st December 2007 is as follows:- Trial Balance of XYZ Ltd. as on 31st Dec. 2007 Debit Balances Rs. Credit Balances Rs. Materials used 3,50,000 Sales(including 2% Sales tax) 9,18,000 Cost of Labour 1,50,000 Sale of Scrap 100 Stock, finished and work in process on 31st December, 2006 50,000 Rent received 2,000 Wages : Factory Staff 15,000 Discounts 2,750 Directors Remuneration 50,000 Recovered against fire claim re : Stock 5,000 Salaries : Clerical Staff 75,000 Capital : Equity 25,000 Insurances : Workmen’s Compensation 1,500 Preference- 9% 8,000 General, fire etc. 2,000 Creditors 1,56,000 Directors’ Life Insurance 1,500 Provision for Taxation 1,05,000 Maintenance : Buildings 1,000 Profit & Loss Account 13,750 Plant and Machinery 12,500 Rent and Rates of premises and hire of plant 20,000 Heat, Light and Power 15,000 Experimental and Laboratory Expenses 10,000 Canteen Expenses 5,000 Staff Welfare expenses 2,500 Motor Expenses 12,500 Professional Charges 2,800 Postage and Telephone 3,500 Books, Printing and Stationery 11,000 Sundry expenses 10,000 Carriage and Packing on Sales 3,300 Discounts 5,000 Debtors 1,78,000 Freehold Property 50,000 Plant and Machinery 12,500 Fixtures and Fittings – Offices 3,500 Office machinery and Equipment 3,000 Motor Car and Van 6,500 Stock of materials on 31st Dec. 2007 1,20,000 Bank 38,000 Sales Tax Paid 15,000 12,35,600 12,35,600 Depreciation is to be provided at the following rates: Plant and Machinery 10% Fixture and Fittings 05% Office Machinery, etc. 10% Motor Vans and Cars 25% The stock of finished goods and work in progress as on 31st December, 2007 was Rs. 35,000. Provide for preference dividend and ordinary dividend at 10%. The total taxation liability is estimated at Rs.1,50,000 of which Rs. 75,000 relates to the current year. Debtors include Rs. 10,000 deposited as security against government contracts. The Works Manager is paid partly by salary and partly by a commission; he is entitled to a commission of 5% on the amount by which the surplus in the factory cost exceeds 20% of the sales for the period. Charge the commission if any in the Profit and Loss Account.
Audit 
