Which of the following items are part of Intangible non-current Assets:

(A) Patents

(B) Furniture

(C) Statement of Profit & Loss A/c(Dr)

(D) Goodwill

(E) Trademark

Choose the correct answer from the options given below:

The correct option is A, D and E only.

To understand why this option is correct, let us analyze the nature of each item listed in the question and classify them according to accounting principles:

Non-current assets are long-term investments and resources that a business intends to hold for more than one year to generate income. These are further sub-classified into:

1. Tangible Assets: Assets that have a physical existence and can be touched and seen (e.g., land, buildings, machinery, and furniture).
2. Intangible Assets: Assets that do not have a physical substance but possess long-term economic value to the business, representing legal rights or competitive advantages.

Let us evaluate each item given in the question:

(A) Patents: A patent is an exclusive legal right granted to an inventor for an invention. It has no physical substance but provides long-term value, making it an Intangible non-current Asset.

(B) Furniture: Furniture has a physical substance and can be seen and touched. Thus, it is classified as a Tangible non-current Asset, not an intangible one.

(C) Statement of Profit & Loss A/c (Dr): A debit balance in the Statement of Profit and Loss represents accumulated losses. It is not an asset; rather, it is shown as a negative item under Reserves and Surplus in Shareholders' Funds on the equity and liabilities side of the Balance Sheet.

(D) Goodwill: Goodwill represents the reputation and brand value of a business that enables it to earn higher profits than normal. It lacks physical substance and represents long-term value, classification it as an Intangible non-current Asset.

(E) Trademark: A trademark is a recognizable sign, design, or expression that identifies products or services of a particular source. Like patents and goodwill, it is non-physical and provides long-term utility, qualifying as an Intangible non-current Asset.

Comparing our findings, items (A) Patents, (D) Goodwill, and (E) Trademark are the only Intangible non-current Assets among the options. Therefore, the combination "A, D and E only" is the correct answer.