Saturday 23 January 2021



(26) Assets (ਸੰਪਤੀਆਂ)


Assets are the properties owned by business. They are the economics resources of the business. In other words anything which enable the firm to get cash or an economic benefit m the future is an assets. For Example: Land, Building, Machinery, Debtors etc.

Definition given by Prof. R.N .Anthony "Assets are valuable resources owned by a business which are acquired at a measurable money cost".


Types of Assets


(1) Non-Current Assets:


Those Assets which are held for continued use in the business for the purpose of producing goods or services and are not meant for sale. Example of non-current assets are Fixed Assets and Non-Current Investments.


Fixed Assets are those Non-Current Assets of a business which are held not to resell but with the purpose to increase its earning capacity. Fixed Assets are further classified into two categories.


a) Tangible Assets: Tangible Assets are those Assets which can be seen and touched. In other words which have a physical existence such as land and building, plant and machinery, computer, furniture etc.


b) Intangible Assets: Intangible Assets are those Assets which do not have a physical existence and thus cannot be seen or felt. Like, Goodwill, Patents, Copy right, Trade marks, Computer Software etc.


(2) Current Assets:

Current Assets are those Assets which are held by the business with the purpose of converting them into cash within one year. These Assets are also termed as short-lived or Active Assets/Floating Assets/Circulating Assets. For example: Debtors, Stock, Prepaid Expenses etc.


(3) Fictitious Assets/Nominal Assets:

These Assets which cannot be realised in cash or no further benefit can be derived from these Assets. Such Assets deferred revenue expenditure, discount or loss on issue of debenture.