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?

₹6,20,000

The correct answer is option 3- ₹6,20,000.

Inventories = Loose tools + Goods in transit
                   = 1,20,000 + 5,00,000
                   = ₹6,20,000