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Net Worth calculation formulae

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Chaitanyaa (Querist)
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09 January 2022 In net-worth calculation, in some books it is mentioned that only free reserves will be considered . In some books it is mentioned that reserves and surpluses will be included.
Which reserves will actually be considered for NW calculation out of following ?
1. Depreciation reserves.
2. Capital redemption Reserves.
3. Debenture redemption reserve.
4. Subsidy reserves.
5. General reserves.
6. capital reserves
7. Amalgamation reserves.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 January 2022 You can calculate your net worth by subtracting your liabilities (debts) from your assets. If your assets exceed your liabilities, you will have a positive net worth. Conversely, if your liabilities are greater than your assets, you will have a negative net worth.

Net worth includes equity share capital and all reserves (excluding revaluation reserve).

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