1. Real Assets
These includes bulk of the assets side having saleable / disposable value. All assets except fictitious assets are to be classified as Real Assets which are further classified as long term (Fixed assets, Investments) and short term assets.
2.Fixed Assets
These are those Real assets which are Not intended to dispose off within a period of twelve months. They are intended to be used in the business for a long period.
Fixed Assets can be further classified into two parts.
- Tangible Fixed Assets
- Intangible Fixed Assets.
Tangible Fixed Assets : These are those assets which can be touch, seen, feel.
Examples : Land, Buildings, Plant & Machinery, Furniture & Fixture, Office Equipments, Live stock, Railway Sliding etc.
Intangible Fixed Assets : These are those assets which cannot be seen or touched but has a value. Examples : Goodwill, Patents, Trade marks, Copy rights etc.
3.Investments (Long Term)
These are generally non trading in nature since are not required for the purpose of business. These are purchased by the businessman having Surplus Funds (money) & hence can be invested for getting some regular returns in the forms of Interest / Dividend.
Examples : Government Securities
Shares / Debentures of other Company’s
Units of “Unit Trust Of India” etc.
Investment can be long term or even short term. All Investment should be assumed to LONG TERM EXCEPT Short Term Investments, Temporary Investments, Marketable securities Investments.
4.CURRENT ASSETS (LOANS & ADVANCE) – Short Term
These are those Real Assets which are intended to be disposed off and get it converted into money / money’s worth within a period of 12 months.
Examples : Sundry Debtors Loans given
Bills Receivable Advance given
Cash in hand Advance Tax
Cash at Bank Security deposits given
Closing Stock (Inventories) Advance to Suppliers
Outstanding Incomes Pre-paid Expenses
5.Loose tools, Fixed Asset Or Current Asset
Although these can be used for a longer period and are subjected to depreciation as well, non the less, it should be classified as current asset simply to comply with schedule VI part 1 to the Companies Act 1956.
6. Fictitious Assets
These are not the assets in the real sense but these are non recurring expenses and losses appearing on the assets side of the balance sheet.
They doesn’t have any saleable or disposable value.
Examples
• Profit & loss A/c (Accumulated loss).
• Deferred Advertisement.
• Expenses on issue of Shares / Debentures.
• Discount on issue of Shares / Debentures.
These includes bulk of the assets side having saleable / disposable value. All assets except fictitious assets are to be classified as Real Assets which are further classified as long term (Fixed assets, Investments) and short term assets.
2.Fixed Assets
These are those Real assets which are Not intended to dispose off within a period of twelve months. They are intended to be used in the business for a long period.
Fixed Assets can be further classified into two parts.
- Tangible Fixed Assets
- Intangible Fixed Assets.
Tangible Fixed Assets : These are those assets which can be touch, seen, feel.
Examples : Land, Buildings, Plant & Machinery, Furniture & Fixture, Office Equipments, Live stock, Railway Sliding etc.
Intangible Fixed Assets : These are those assets which cannot be seen or touched but has a value. Examples : Goodwill, Patents, Trade marks, Copy rights etc.
3.Investments (Long Term)
These are generally non trading in nature since are not required for the purpose of business. These are purchased by the businessman having Surplus Funds (money) & hence can be invested for getting some regular returns in the forms of Interest / Dividend.
Examples : Government Securities
Shares / Debentures of other Company’s
Units of “Unit Trust Of India” etc.
Investment can be long term or even short term. All Investment should be assumed to LONG TERM EXCEPT Short Term Investments, Temporary Investments, Marketable securities Investments.
4.CURRENT ASSETS (LOANS & ADVANCE) – Short Term
These are those Real Assets which are intended to be disposed off and get it converted into money / money’s worth within a period of 12 months.
Examples : Sundry Debtors Loans given
Bills Receivable Advance given
Cash in hand Advance Tax
Cash at Bank Security deposits given
Closing Stock (Inventories) Advance to Suppliers
Outstanding Incomes Pre-paid Expenses
5.Loose tools, Fixed Asset Or Current Asset
Although these can be used for a longer period and are subjected to depreciation as well, non the less, it should be classified as current asset simply to comply with schedule VI part 1 to the Companies Act 1956.
6. Fictitious Assets
These are not the assets in the real sense but these are non recurring expenses and losses appearing on the assets side of the balance sheet.
They doesn’t have any saleable or disposable value.
Examples
• Profit & loss A/c (Accumulated loss).
• Deferred Advertisement.
• Expenses on issue of Shares / Debentures.
• Discount on issue of Shares / Debentures.