Read the following passage and answer the following question.
The following items are given in the company statements-
Loose tools- ₹1,20,000
Goods in transit- ₹5,00,000
Prepaid expenses- ₹15,000
Interest accrued on investments - ₹10,000
Deferred Tax assets- ₹2,00,000
What is the amount of total current assets that are shown in the company's balance sheet?
Answer & explanation
Correct answer: option 4
The correct answer is option 4- ₹6,45,000.
Current assets = Inventories + Other current assets
= 6,20,000 + 25,000
= ₹6,45,000
* Other current assets = Prepaid expenses + Interest accrued on investments
= 15,000 + 10,000
= ₹25,000
* Inventories = Loose tools + Goods in transit
= 1,20,000+ 5,00,000
= ₹6,20,000