If the financial institution may like to keep margin of $25 %$ on assets. If the tangible assets are $80 %$ while intangible assets are $20 %$ ,then maximum finance that FIs will give will be _____________.

75 %

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60 %

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100 %

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80 %

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Solution

The correct option is B $60 %$
( $75 %$ of tangible assets + $0 %$ of intangible asset) Normally, the financial institutions do not finance the non-tangible assets.

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Q. Tangible and intangible assets are classified under the head .

From the following particulars of Bharat Gas Limited, calculate Cash Flows from Investing Activities. Also, show the workings clearly preparing the ledger accounts:

Balance Sheet of Bharat Gas Ltd. as on 31 Mar. 2016 and 31 Mar. 2017
Particulars	Note No.	Figures as the end of 2017 (Rs)	Figures as at the end of reporting 2016 (Rs)
II) Assets
1. Non-current Assets
a) Fixed assets
i) Tangible assets	1	12,40,000	10,20,000
ii) Intangible assets	2	4,60,000	3,80,000
b) Non-current investments	3	3,60,000	2,60,000

Notes	1	Tangible assets = Machinery
	2	Intangible assets = Patents

Notes

	Figures of current year	Figures of previous year

1. Tangible Assets
Machinery	12,40,000	10,20,000
2. Intangible Assets
Goodwill	3,00,000	1,00,000
Patents	1,60,000	2,80,000
	4,60,000	3,80,000
3. Non-current Investments
10% long term investments	1,60,000	60,000
Investment in land	1,00,000	1,00,000
Shares of Amartex Ltd.	1,00,000	1,00,000
	3,60,000	2,60,000

Additional Information:

(a) Patents were written-off to the extent of Rs. 40,000 and some Patents were sold at a profit of Rs. 20,000.

(b) A Machine costing Rs. 1,40,000 (Depreciation provided thereon Rs. 60,000) was sold for Rs. 50,000. Depreciation charged during the year was Rs. 1,40,000.

(c) On March 31, 2016, 10% Investments were purchased for Rs. 1,80,000 and some Investments were sold at a profit of Rs. 20,000. Interest on Investment was received on March 31, 2017.

(d) Amartax Ltd. paid Dividend @ 10% on its shares.

(e) A plot of Land had been purchased for investment purposes and let out for commercial use and rent received Rs. 30,000.

Q. Which of the following are Intangible Assets ?

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If the financial institution may like to keep margin of 25% on assets. If the tangible assets are 80% while intangible assets are 20%,then maximum finance that FIs will give will be _____________.

The correct option is B 60%(75% of tangible assets + 0% of intangible asset) Normally, the financial institutions do not finance the non-tangible assets.

If the financial institution may like to keep margin of $25 %$ on assets. If the tangible assets are $80 %$ while intangible assets are $20 %$ ,then maximum finance that FIs will give will be _____________.

The correct option is B $60 %$
( $75 %$ of tangible assets + $0 %$ of intangible asset) Normally, the financial institutions do not finance the non-tangible assets.