Goodwill of a company will be shown in Balance sheet under the sub-heading.

Intangible Asset

The correct answer is Option (2) - Intangible Asset.

AS 26 refers to "Intangible Assets," an accounting standard issued by the Institute of Chartered Accountants of India (ICAI). This standard provides guidelines for recognizing, measuring, presenting, and disclosing intangible assets in the financial statements of an entity. Intangible assets are non-monetary assets without physical substance, such as patents, copyrights, trademarks, and goodwill.