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Equity Meaning

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(Querist)
05 June 2009 Dictinary meaning of word equity is value of shares then why
Aggregate value of assets - Aggregate value of liabilities = Equity?
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Advocate Vivek Kumar Sancheti

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Advocate Vivek Kumar Sancheti (Expert)
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.
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Manmohan ACA, CS

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Manmohan ACA, CS (Expert)
06 June 2009 agree
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Brij Bhushan Sangal

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Brij Bhushan Sangal (Expert)
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).
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Deepak Goel

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Deepak Goel (Expert)
07 June 2009 Agree with experts.
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