Goodwill of a company will be shown in Balance sheet under the sub-he…

The correct answer is Option (2) → Intangible Asset

Goodwill has no physical form but gives the business a benefit over years, so in the Schedule III balance sheet it is shown under Non-current assets → Fixed assets → Intangible assets.

Option (1) Tangible Asset — Incorrect. Tangible assets are those that can be seen and touched, such as land, building and machinery.

Option (3) Current Investment — Incorrect. Goodwill is not an investment and is not held for sale within a year.

Option (4) Other Non current Assets — Incorrect. Schedule III gives goodwill its own sub-head, intangible assets, under fixed assets.