06 June 2009
In the case of COMPANY,capital introduced in the business is called as "Equity".According to accounting equation: Assets=Liabilty+capital, or; Asset=Liabilty+Equity (IN THE CASE OF COMPANY) or; Asset-Liabilty=Equity or; Equity=Asset-Liabilty.
06 June 2009
I agree with Mr. Vivek and added further:
as per Dictinary meaning of word equity is value of shares means if you contribute some money in capital of company/business than your value of share capital is equity(your ownership part).
CAclubindia
