What are Fictitious Assets? Give Examples

Fictitious Assets: There may be some expenditures or losses that are written-off over some years and the full amount is not charged from the profits of the accounting year in which they are incurred. Only a portion of such expenses or losses is written off from the current accounting year. The portion of expenditure not written-off is shown on the Assets side of the Balance Sheet under the head Miscellaneous Expenditure. For example, Advertisement suspense, debit balance of Profit and Loss Account, etc. These are not actually the assets but are still recorded in the Balance Sheet for writing them off over some years.

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A promissory note is an unconditional promise in writing given by the buyer (or creditor) to the seller (or debtor) to pay the amount of money specified therein to the seller or to the order of seller or to bearer.

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