can i deduct value of assets from capital instead of showing it in assets side.
can some please clear this concept i am not getting it, i have seen people deducting value of building from capital and not showing it in assets side.
Thanks in advance
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ASSETS showing in balance sheet
Replies (3)
balance sheet equation =
equity/capital = assets - liability
Net worth = reserves and surplus or assets - liabilities.
capital - assets = ? 50capital-100 assets = 50 liabilities? But assets are supposed to be shown on asset side.
Assets and liabilities need to be showed on the respective side of balance sheet and not on net basis.
if building is reduced from capital then it must be check if it's used for residential purpose.
if building is reduced from capital then it must be check if it's used for residential purpose.
No you cannot deduct assets from capital. You have to show it separately under Fixed Assets in Assets side of Balance Sheet
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