Question

All except______are items of balance sheet.

• A. goodwill A/c
• B. trade debtors A/c
• C. telephone charge A/c
• D. rent receivable A/c

Answer 1

The correct option is C telephone charge A/c

Goodwill - It is an intangible asset and to be shown in Balance Sheet as fixed asset.

Trade Debtors- It is the amount due from the customers against sale of goods. Trade debtors are part of current assets and shown in Balance Sheet.

Telephone Charges- These are indirect expenses and shown in Profit & Loss Account.

Rent Receivables- It is an artificial account against which income is due but not received. It has to be shown in current assets in Balance Sheet.