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
In which head Deferred tax asset is shown in the balance sheet of the company?
Answer & explanation
Correct answer: option 2
The correct answer is option 2 - Non-current assets.
Deferred tax asset is shown under the head non current asset in the balance sheet of the company.
The asset side of balance sheet format of a company is as follows-
1) Non-Current Assets
- (a) Fixed assets
(i) Tangible assets
(ii) Intangible assets
(iii) Capital work-in-progress
(iv) Intangible assets under development - (b) Non-current investments
- (c) Deferred tax assets (net)
- (d) Long-term loans and advances
- (e) Other non-current assets
2) Current Assets
- (a) Current investments
- (b) Inventories
- (c) Trade receivables
- (d) Cash and cash equivalents
- (e) Short-term loans and advances
- (f) Other current assets