Experts can you tell me when calculating TOTAL ASSETS will we always deduct or minus "FICTIOUS ASSETS"
AND WHAT ALL ITEMS COME UNDER FICTIOUS ASSETS ???
Dear Student
Fictitious assets are the assets which cannot be realised in cash or no for the benefit can be derived from these assets. Such 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.
Fictitious assets are not always deducted from the total assets rather it depends upon the situation and requirement of question.
Regards
Fictitious assets are the assets which cannot be realised in cash or no for the benefit can be derived from these assets. Such 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.
Fictitious assets are not always deducted from the total assets rather it depends upon the situation and requirement of question.
Regards