I want to know that is net worth includes preference share capital or not.
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.
CA.Subhankar
(Accounts & Finance)
(65 Points)
Replied 11 November 2010
| Equity Share Capital | xxxx |
| Preference Share Capital | xxxx |
| Reserves & Surplus | xxxx |
| Less : Preliminary expenses | xxx |
| Net Worth | xxxx |
| Add : Long term Loan | xxxx |
| Capital Employed | xxxx |
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