NW & TNW
This query is : Resolved
14 August 2009
is there any difference between Networth & Tangible Net worth?
Guest
Guest
(Expert)
14 August 2009
Dear Sreekumar
I would like to explain the difference between Networth and Tangible Networth through the following example (a balance sheet of XYZ ltd as on December 31, 2009)
Assets (Rs crore):
Intangible (Copyrights, Patents etc.): 100
Tangible (Plant & Machinery, Building): 300
Liabilities (Rs crore): 250
Equity Capital (Rs Crore): 150
Hence,
Networth= Total Assets - Total Liabilities (at book value)
=> Networth of XYZ Ltd as on December 31, 2009 (Rs crore) = 300-250=150
Whereas, Tangible Networth= Total Assets-Intangible Assets-Total Liabilities
=> Tangible Networth of XYZ Ltd as on December 31, 2009 (Rs crore)= 300-100-250=50
Trust, this assists you.
Best Regards
CA Himanshu Garg
ca.hims@gmail.com
I would like to explain the difference between Networth and Tangible Networth through the following example (a balance sheet of XYZ ltd as on December 31, 2009)
Assets (Rs crore):
Intangible (Copyrights, Patents etc.): 100
Tangible (Plant & Machinery, Building): 300
Liabilities (Rs crore): 250
Equity Capital (Rs Crore): 150
Hence,
Networth= Total Assets - Total Liabilities (at book value)
=> Networth of XYZ Ltd as on December 31, 2009 (Rs crore) = 300-250=150
Whereas, Tangible Networth= Total Assets-Intangible Assets-Total Liabilities
=> Tangible Networth of XYZ Ltd as on December 31, 2009 (Rs crore)= 300-100-250=50
Trust, this assists you.
Best Regards
CA Himanshu Garg
ca.hims@gmail.com
15 August 2009
Can we treat long term borrowinngs as a part of Total Net worth? What are the other items we can add to Total Net Worth?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund Annexure-B
- Liable to deduct tds and 44ADA
- Sale of Equity shares for Purchase of Residential Property
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- ECO SUPPLY REPORTIONG IN GSTR-1
- Is Interest applicable for payment made through credit ledger vide DRC03 for FY 2020-21 & 2021-22
- CCFS 2026 Schemed
- Subscription paid to foreign customer
- Two seprate Invoice needed
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
