Shivani (Learner) (1881 Points)
07 December 2016Dear Friends
I am not sure if this is the right category to post this question.
My apologies if it isn't.
I want to know if a person wants to prepare his Net Worth Statement and while doing so finds that his Liabiliteis are more than his Assets, then what shall we call the difference amount?
If Assets are more than Liabilities, i think the difference amount is his Capital. Am i right?
regards
shivani
CA VIRAL SANGHVI
(Finance head)
(681 Points)
Replied 08 December 2016
Net Worth = Total Assets - Total liabilities
If the resultant figure is positive than is is called the positive net worth and if the resultant figure is nagative than it is called the nagative net worth.
Sudhir Soni
(Finance & Taxation )
(38 Points)
Replied 08 December 2016
FCA surbhi jain
(FCA)
(897 Points)
Replied 08 December 2016
Networth can be negative or positive.
You have positive net worth if assets>liabilities.
You have negative net worth if liabilities >assets
CAclubindia
