Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Financial Statements of a Company

Question:

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?

Options:

₹6,20,000

₹6,25,000

₹6,00,000

₹6,45,000

Correct Answer:

₹6,45,000

Explanation:

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