Question

The following information was extracted from the books of Mask Ltd. answer the question (In accordance with the provisions of the Companies Act, 2013):

Particulars	₹
10% Debentures payable after 3 years	5,00,000
10% Bank Loan from PNB repayable after 4 years	2,50,000
Stock-in-Trade (Inventories)	1,00,000
Goodwill	1,25,000
Computer Software under Development	1,25,000
Provision for Tax	1,50,000

Total value of intangible assets that will be shown under the sub-head intangible assets on the assets part of the Balance Sheet is ______.

पर्याय

• ₹ 1,25,000

• ₹ 2,50,000

• ₹ 3,75,000

• ₹ 5,50,000

Answer 1

Total value of intangible assets that will be shown under the sub-head intangible assets on the assets part of the Balance Sheet is ₹ 1,25,000.

Explanation:

According to Schedule III of the Companies Act, 2013, only Goodwill (₹ 1,25,000) is ready for use and directly classified under the sub-head Intangible Assets. Although Computer Software under Development (₹ 1,25,000) is also an intangible item, it cannot be included here because ongoing, incomplete projects must be shown under their own separate sub-head called Intangible Assets under Development.