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how ficticious assets are valued??
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Answer / haresh barot
when company incures any expenses(advertisment)and the
benefit from the adv. is availed for more than one year
then the remaining part of expenses is consider as an
asset. like 500000 exp. benefit 5 years. so, first year
exp. will be rs. 100000 only will be shown on p & l acc.
debit side and 400000 will be shown as fictitious asset on
asset side in balance sheet.
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