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