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Answer Posted / prasanna11149@yahoo.co.in
Fictitious Assets are not assets which are tangible and
visible like buildings, machinery , computer but the
expenditure on some activity which is considered as a
Capital expenditure instead of Revenue expenditure. When
expenditure incurred amount is not debited to Profit and
Loss A/C but shown as Fictitious asset and over a period
the amount is writtenoff or debited to Pand L account. For
example Share issue expenses by a Corporate, This is not
debited to P& L A/c in the year in which it is incurred but
debited in instalments as decided by Management over few
years.
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