Net worth

CA Devender Chauhan (Group Financial Accountant) (1526 Points)

11 November 2010

I want to know that is net worth includes preference share capital or not.

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CA Vasiullah (Vasi) (Audit Executive) (1813 Points)
Replied 11 November 2010

yes it includes pref share capital as far as I know.......... correct me if wrong........

CA Devender Chauhan (Group Financial Accountant) (1526 Points)
Replied 11 November 2010

ya i have studied that too that

Net worth = total assets - total liab.

OR Net Worth = Eq. share cap. + pref. share cap. + res & surplus - misc. exp. to the extent not written off

But somebody told me that it doesn't include pref share cap.

CA Vasiullah (Vasi) (Audit Executive) (1813 Points)
Replied 11 November 2010

then they must be wrong........ I too studied the same in different books........

CA Vasiullah (Vasi) (Audit Executive) (1813 Points)
Replied 11 November 2010

but Net worth= net fixed assets+working capital

CA Manish Kumar (Chartered Accountant) (383 Points)
Replied 11 November 2010

Yes, definately the net woth includes the preference share capital.

(Guest)

NET WORTH IS SHARE HOLDERS FUND... SO IT WILL INCULDE PREFRENCE SHARE..

CA.Subhankar (Accounts & Finance) (65 Points)
Replied 11 November 2010

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swapnil (CA Final) (598 Points)
Replied 11 November 2010

nice explain by shubhankar,

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