Practicing Success

Target Exam

CUET

Subject

Accountancy

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 total of other current assets that will be shown in the company's balance sheet?

Options:

₹15,000

₹25,000

₹10,000

₹2,25,000

Correct Answer:

₹25,000

Explanation:

The correct answer is option 2- ₹25,000.

Other current assets = Prepaid expenses + Interest accrued on investments
                                = 15,000 + 10,000
                                = ₹25,000