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Net assets

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06 January 2013 Will be the preference share part of Net Assets?If yes what is the logic so that i can explain to my younger?
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CA Amit Talada

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CA Amit Talada (Expert)
07 January 2013 net assets= tangible assets-outside liabilities.

preference share capital is a part of share capital, its shareholder's fund and not an outside liability, so it forms part of net assets.

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