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 inventories that will be shown in the company's balance sheet?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- ₹6,20,000.
Inventories = Loose tools + Goods in transit
= 1,20,000 + 5,00,000
= ₹6,20,000