Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:

The following items are given in the company statements- 
Loose tools-  ₹120000
Goods in transit-  ₹500000
Prepaid expenses-  ₹15000
Interest accured on investments - ₹10000
Deferred Tax assets- ₹200000

What is the amount of total current assets that are shown in the company's balance sheet?

Options:

₹620000

₹625000

₹600000

₹645000

Correct Answer:

₹645000

Explanation:

Current assets= Inventories + Other current assets
                     = 620000 + 25000
                     = ₹645000


* Other current assets= Prepaid expenses + Interest accured on investments
                              = 15000 + 10000
                              = ₹25000


* Inventories= Loose tools + Goods in transit
                  = 120000+ 500000
                  = ₹620000