How Should the following assets be shown in the permanence order in the balance sheet of a company?
1. Patent
2. Cash at bank
3. Stock in trade
4. Land and building
5. Cash in hand

1, 4, 3, 2, 5

No worries! We‘ve got your back. Try BYJU‘S free classes today!

4, 1, 3, 2, 5

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

4, 3, 5, 2, 1

No worries! We‘ve got your back. Try BYJU‘S free classes today!

5, 2, 1, 3, 4

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B 4, 1, 3, 2, 5
The permanence order of assets in the balance sheet is:
1. Land and building
2. Patent
3. Stock in trade
4. Cash at bank
5. Cash in hand.

Suggest Corrections

Similar questions

	₹		₹
Goodwill	20,000	Bank	20,000
Capital	1,80,000	Sundry Creditors	63,000
Liabilities for Expenses	1,200	Bills Receivable	13,000
Cash in Hand	1,000	Plant and Machinery	40,000
Investment	20,000	Provision for Doubtful Debts	2,500
Bills Payable	10,700	Closing Stock	80,000
Net Profit	92,600	Furniture	16,000
Sundry Debtors	50,000	Drawing	30,000
Land and Building	60,000

Under what heads the following items on the Assets side of the Balance Sheet of a Company will be presented :

(i) Sundry Debtors

(ii) Patents and Trade Marks

(iii) Shares in D.C.M. Limited

(iv) Bills Receivable

(v) Advances recoverable in cash within the operating cycle

(vi) Prepaid Insurance

(vii) Work-in-Progress

(i) Sundry Debtors;	(ii) Patents and Trademarks;	(iii) Shares in Quoted Companies:
(iv) Advances recoverable in cash;	(v) Prepaid Insurance; and	(vi) Work-in-Progress (Machinery)?

Join BYJU'S Learning Program