Can any body confrm me about the Formula of Net Worth i.e., Fixed Assets + Working Capital
11 Replies
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 04 February 2010
net worth
Definition 1
For a company, total assets minus total liabilities. Net worth is an important determinant of the value of a company, considering it is composed primarily of all the money that has been invested since its inception, as well as the retained earnings for the duration of its operation. Net worth can be used to determine creditworthiness because it gives a snapshot of the company's investment history. also called owner's equity, shareholders' equity, or net assets.
Definition 2
For an individual, the value of a person's assets, including cash, minus all liabilities. The amount by which the individual's assets exceed their liabilities is considered the net worth of that person.
regards,
ratan
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 04 February 2010
Formula for calculating Networth
equity share capital+preference share capital + reserve and surplus + profits - fictitious assets like preliminary expense - losses
regards,
ratan
Sushmita
(Finance Officer)
(142 Points)
Replied 04 February 2010
I agree with ratan but want to add that for an individual, total assets are recorded at current market value. For a company, net worth uses assets as recorded on the balance sheet at historical cost minus any depreciation.
RAMANJU
(here to updating the knowledge)
(485 Points)
Replied 05 February 2010
Networth = Total Assets - External Liabilities; or
Networth = Share Capital + Reserves & Surplus - Miscellaneous expenditure to the extent not written off
CA Navinkumar
(Chartered Accountant)
(21 Points)
Replied 19 August 2011
is share application money included in the calculation of net worth???????
please reply i m in need..............
CA JAIKRIT MALIK
(CHARTERED ACCOUNTANT )
(71 Points)
Replied 07 November 2011
No, share application money is not included in Net worth ..
Share capital money is shown Under Current Liabilities until all the allotment is made..
Pranav Dileep Potekar
(Data Analyst)
(31 Points)
Replied 10 November 2011
is share premium included in calculating shareholders fund or proprietary funds or networth?
shareholders fund or proprietary funds or networth=equity share capital+reserves and surplus +preference share capital-ficititious assets
what all is included in reserves and surplus?
CA JAIKRIT MALIK
(CHARTERED ACCOUNTANT )
(71 Points)
Replied 10 November 2011
yes share premium is included in as under Reserves & surplus .... ( but this reserve is not a Free reserve )..
meena
(student)
(26 Points)
Replied 18 February 2012
Can you please confirm.. Does "Reserves and Surplus" include non-free reserves??
And is it true "Net Worth = Net Assets = Owners' Equity = Shareholders' Equity ??
Shubham chhajed
(mumbai)
(54 Points)
Replied 13 December 2012
is deferred tax assets included in Net Worth???????
erris share application money included in the calculation of net worth???????
Read more at: /forum/net-worth-defination-67320.asp#.UMmlaayfaLk
Read more at: /forum/net-worth-defination-67320.asp#.UMmlaayfaLk
is share application money included in the calculation of net worth???????
Read more at: /forum/net-worth-defination-67320.asp#.UMmlaayfaLk
Read more at: /forum/net-worth-defination-67320.asp#.UMmlaayfaLk
Kapil Kumawat
(Article)
(68 Points)
Replied 06 May 2016
NET WORTH MEANS = ALL MOVEABLE & IMMOVEABLE ASSETS+ CURRENT ASSETS-CURRENT LIABILITIES-LOANS.
IS THIS CORRECT???
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