Net worth

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Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2011 Dear Expert,

How to calculate Net Worth?

Hari Beldona

Hari Beldona (Expert)
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07 September 2011 Net Worth is calculated on the basis of following formula from the latest balance sheet:

Net Worth = Assets-Liabilities.

In case of Company it is calculated as below:

1.Share Capital.
2.Share Premium.
3.Reserves & Surplus(Free Reserves otherwise available for distribution of dividends)
4.Undistributed Profit and Loss a/c
Total of the above
Less:
1.Debit balance of P&L a/c if any
2.Miscellaneous Expenses if any

OR

Net Fixed Assets + Net working Capital

Net Working Capital= Current Assets- Current Liabilities

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Hari Beldona

Hari Beldona (Expert)
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Querist : Anonymous

Querist : Anonymous (Querist)

08 September 2011 Dear Sir,

If we want to calculate Net worth of Individual then what will be formula?

Thanks

Querist : Anonymous

Querist : Anonymous (Querist)

08 September 2011 Dear Sir,

If we want to calculate Net worth of Individual then what will be formula?

Thanks

Hari Beldona

Hari Beldona (Expert)
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08 September 2011 Net worth in case of Individual is as below:

Net worth= Assets-Liabilities (as per latest Balance sheet usually)

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Querist : Anonymous

Querist : Anonymous (Querist)

08 September 2011 As per your advice i check the balance sheet but in B/S there is no liability so can we take capital a/c as a Net worth ? I will give detail for your reference .
In Assets (FA+INV+CA) 58868083.16
In Liability (Only Caiptal)Rs.58868083.16

Thanks

Hari Beldona

Hari Beldona (Expert)
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08 September 2011
Yes, Capital a/c is the net worth when there are no other liabilities.

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Querist : Anonymous

Querist : Anonymous (Querist)

08 September 2011 Many many Thanks sir