Net worth
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
02 April 2012
How is networth and book value of a company calculated
02 April 2012
NET WORTH of a company = ALL ASSETS-LIABILITIES( SHORT TERM AND LONG TERM,BOTH SECURED AND UNSECURED)-FICTITIOUS ASSETS
(OR)
CAPITAL +RESERVES AND SURPLUS -FICTITIOUS ASSETS
(OR)
CAPITAL +RESERVES AND SURPLUS -FICTITIOUS ASSETS
02 April 2012
Networth / Book Value of a Company = Share Capital + Reserves and Surplus - Misc Expenditure not written off - P&L Debit Balance (if any).
03 April 2012
In a company, this is known as shareholders' (or owners') equity and is determined by subtracting liabilities on the balance sheet from assets
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