Question

What is fictitious asset?

Answer 1

Dear student,
Fictitious assets are the assets which cannot be realised in cash or no for the benefit can be derived from these assets. Search assets include debit balance of P&L A/c and the expenditure not yet written off such as Advertisement Expenses, etc. These assets are not really assets but are shown on the asset side only for the purpose of transferring them to the Profit and loss account gradually over a period of time. These are also called Nominal Assets.
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