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ASSETS showing in balance sheet

09 December 2021

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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3 Replies

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 09 December 2021

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.

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 10 December 2021

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.