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Net Worth

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(Querist)
13 January 2011 What is Net Worth? What is the formula for calculating Net Worth?
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Manmohan ACA, CS

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Manmohan ACA, CS (Expert)
13 January 2011 Net worth simply implies actual book value of a enterprise after payment of all outside liability.
Formula
all assets of company(excluding fictitious assets) less all provision and external outstanding liabilities including debentures.
Liability approach
share capital + all reserve and surplus including statutory reserve ) less fictitious assets
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