Question

fictitious assets are to be transferred to which account ?​

Answer 1

Answer:

Fictitious assets being losses are debited to capital accounts of partners in the profit- sharing ratio. 2. Loan to a partner is retained in a separate account and is taken back from him.

Answer 2

Fictitious assets are to be transferred to the partner’s capital account.

Fictitious assets are considered as losses that are not transferred to the realization account. Fictitious assets means assets that are intangible in nature. They are not assets but are shown in financial statements. They are also known as a deferred revenue expenses. Examples of these are advertisement expense, discounts on the issue of debentures, etc. which are shown on the assets side of the balance sheet.