Accountancy Part BFinancial Statements of a Company

Which of the following items are part of Intangible non current Asset…

Which of the following items are part of Intangible non current Assets?

A. Patents
B. Furniture
C. Statement of Profit & Loss A/c (Dr.)
D. Goodwill
E. Trademark

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → A, D and E only

Intangible assets are non-current assets that add value to the business but have no physical form.

(A) Patents — Correct. A legal right with no physical form.

(B) Furniture — Incorrect. It is a tangible fixed asset.

(C) Statement of Profit & Loss A/c (Dr.) — Incorrect. A debit balance of the Statement of Profit and Loss is a loss; under Schedule III it is disclosed as a negative figure under the head shown as a negative figure under Reserves and Surplus, not as an assetldquo;Surplusshown as a negative figure under Reserves and Surplus, not as an assetrdquo; in Reserves and Surplus, not as an asset.

(D) Goodwill — Correct. It is shown under Intangible assets in the Balance Sheet.

(E) Trademark — Correct. Like a patent, it is a right without physical form.

NCERT (2026-27 edition):
Introduction – “… Fixed assets are long-term assets and provide productive capability to the firm. The examples of fixed assets are land, building, plant & machinery, etc. It includes both tangible and intangible assets. Tangible assets are physical in nature, which have form, shape and size. Intangible assets are resources capable of adding value but do not have a physical dimension such as patents, copyrights, trade mark, etc.”

NCERT (2026-27 edition):
Important Features of Presentation – “… Debit balance in the statement of profit and loss to be disclosed as negative figure under the head “Surplus”.”

NCERT (2026-27 edition):
Types of Financial Statements

Extract from the NCERT textbook