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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 ______.
Options
₹ 1,25,000
₹ 2,50,000
₹ 3,75,000
₹ 5,50,000
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Solution
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.
