Net worth

This query is : Resolved

Share Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2011 Dear Expert,

How to calculate Net Worth?

Hari Beldona

Hari Beldona (Expert)
Follow

07 September 2011 Net Worth is calculated on the basis of following formula from the latest balance sheet:

Net Worth = Assets-Liabilities.

In case of Company it is calculated as below:

1.Share Capital.
2.Share Premium.
3.Reserves & Surplus(Free Reserves otherwise available for distribution of dividends)
4.Undistributed Profit and Loss a/c
Total of the above
Less:
1.Debit balance of P&L a/c if any
2.Miscellaneous Expenses if any

OR

Net Fixed Assets + Net working Capital

Net Working Capital= Current Assets- Current Liabilities

Message likes : 1 times

Hari Beldona

Hari Beldona (Expert)
Follow

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

08 September 2011 Dear Sir,

If we want to calculate Net worth of Individual then what will be formula?

Thanks

Querist : Anonymous

Querist : Anonymous (Querist)

08 September 2011 Dear Sir,

If we want to calculate Net worth of Individual then what will be formula?

Thanks

Hari Beldona

Hari Beldona (Expert)
Follow

08 September 2011 Net worth in case of Individual is as below:

Net worth= Assets-Liabilities (as per latest Balance sheet usually)

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

08 September 2011 As per your advice i check the balance sheet but in B/S there is no liability so can we take capital a/c as a Net worth ? I will give detail for your reference .
In Assets (FA+INV+CA) 58868083.16
In Liability (Only Caiptal)Rs.58868083.16

Thanks

Hari Beldona

Hari Beldona (Expert)
Follow

08 September 2011
Yes, Capital a/c is the net worth when there are no other liabilities.

Querist : Anonymous

Querist : Anonymous (Querist)

08 September 2011 Many many Thanks sir

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now