Networth ?
This query is : Resolved
06 November 2012
Net worth of any company is its total assets excluding all third party liabilities...
06 November 2012
Or else, consider all equity funds, as in equity share capital, reserves & surplus, etc and deduct misc. exps from it..
07 November 2012
No no., its total assets less third party liabilities.. here total assets include misc exps..
07 November 2012
Now, apart from above formula, there is another way to calculate networth..., its total of all equity funds less misc exps..
07 November 2012
So Total Asset = (FA+CA+M.Exp)
NW= TA- Third party liabilities.
ok
Now how it will be same as : Equity funds-Mis Exp.
eg.,
TA =(3+4+2)= 9
Here 2 is Mis exp
3rd party Liabilities = 2
NW=7
So Equity fund should be (9-2)= 7
2 is third party liabilities
Now if we deduct Misc exp !
NW= TA- Third party liabilities.
ok
Now how it will be same as : Equity funds-Mis Exp.
eg.,
TA =(3+4+2)= 9
Here 2 is Mis exp
3rd party Liabilities = 2
NW=7
So Equity fund should be (9-2)= 7
2 is third party liabilities
Now if we deduct Misc exp !
07 November 2012
Ohkk sorry, so we r suppose to exclude misc exp while calculating the total assets.. thanx for clarifying..
07 November 2012
i had this conceptual error.., misc exps are as such not part of net worth., so in either of the formulas, you are suppose to exclude misc exps..
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