09 January 2022
In net-worth calculation, in some books it is mentioned that only free reserves will be considered . In some books it is mentioned that reserves and surpluses will be included. Which reserves will actually be considered for NW calculation out of following ? 1. Depreciation reserves. 2. Capital redemption Reserves. 3. Debenture redemption reserve. 4. Subsidy reserves. 5. General reserves. 6. capital reserves 7. Amalgamation reserves.
09 January 2022
You can calculate your net worth by subtracting your liabilities (debts) from your assets. If your assets exceed your liabilities, you will have a positive net worth. Conversely, if your liabilities are greater than your assets, you will have a negative net worth.
Net worth includes equity share capital and all reserves (excluding revaluation reserve).
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