Question

Patents appear on
(1) the debit side of profit and loss A/c
(2) the credit side of profit and loss A/c
(3) the asset of balance sheet
(4) the liabilities of balance sheet

Answer 1

3. Asset of balance sheet

Answer 2

Answer:

Concept:

Patents are intangible assets of an organisation. They have a realisable value.

Solution:

Since patents are assets, they are recorded on the asset side of balance sheet.

Therefore, the right answer is (3).