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

Computer software under development will be shown under ______ head of the sub-head property, plant and equipment and intangible assets on the assets part of the Balance Sheet.

Options

• Intangible Assets under Development

• Tangible Assets

• Capital Work-in-Progress

• Capital Advance

Answer 1

Computer software under development will be shown under Intangible Assets under Development head of the sub-head property, plant and equipment and intangible assets on the assets part of the Balance Sheet.

Explanation:

According to Schedule III, Part I of the Companies Act, 2013, assets that are non-physical (intangible), like computer software, patents, or brands that are currently being created or developed and are not yet complete, cannot be classified as fully ready “Intangible Assets”. Instead, they are explicitly categorised under the specific line item Intangible Assets under Development, which sits under the broader heading block of Property, Plant and Equipment and Intangible Assets.