Equity Meaning
This query is : Resolved
A D - Loving Life
(Querist)
05 June 2009
Dictinary meaning of word equity is value of shares then why
Aggregate value of assets - Aggregate value of liabilities = Equity?
Aggregate value of assets - Aggregate value of liabilities = Equity?
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.
Assets=Liabilty+capital, or;
Asset=Liabilty+Equity (IN THE CASE OF COMPANY) or;
Asset-Liabilty=Equity or;
Equity=Asset-Liabilty.
Manmohan ACA, CS
(Expert)
06 June 2009
agree
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).
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).
Deepak Goel
(Expert)
07 June 2009
Agree with experts.
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