Net worth

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I want to know that is net worth includes preference share capital or not.

Replies (8)

yes it includes pref share capital as far as I know.......... correct me if wrong........

ya i have studied that too that

Net worth = total assets - total liab.

OR Net Worth = Eq. share cap. + pref. share cap. + res & surplus - misc. exp. to the extent not written off 

But somebody told me that it doesn't include pref share cap.

then they must be wrong........ I too studied the same in different books........

but Net worth= net fixed assets+working capital 

Yes, definately the net woth includes the preference share capital.

NET WORTH IS SHARE HOLDERS FUND... SO IT WILL INCULDE PREFRENCE SHARE..


Equity Share Capital xxxx
Preference Share Capital xxxx
Reserves & Surplus xxxx
Less : Preliminary expenses xxx
                                   Net Worth xxxx
Add : Long term Loan xxxx
                       Capital Employed xxxx


nice explain by shubhankar,

 


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