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Net worth

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Querist : Anonymous (Querist)
02 April 2012 How is networth and book value of a company calculated

02 April 2012 NET WORTH of a company = ALL ASSETS-LIABILITIES( SHORT TERM AND LONG TERM,BOTH SECURED AND UNSECURED)-FICTITIOUS ASSETS

(OR)

CAPITAL +RESERVES AND SURPLUS -FICTITIOUS ASSETS



02 April 2012 Networth / Book Value of a Company = Share Capital + Reserves and Surplus - Misc Expenditure not written off - P&L Debit Balance (if any).


03 April 2012 In a company, this is known as shareholders' (or owners') equity and is determined by subtracting liabilities on the balance sheet from assets



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