Question

Fictitious assets are shown on the asset side of the balance sheet of a company ________

Answer 1

Fictitious assets are shown on the asset side of the balance sheet of a company under the heading Miscellaneous Expenditure. The incidental expenses which cannot be classified as manufacturing, selling, and administrative expenses are called miscellaneous expenditure.

What are fictitious assets?

Fictitious assets can be defined as the assets that cannot be realised in cash or no further benefit can be derived from those assets. These assets include a debit balance of profit and loss A/c and the expenditure not yet written off such as advertising expenses etc.