Formula for calculating Networth

equity share capital+preference share capital + reserve and surplus + profits - fictitious assets like preliminary expense - losses

regards,

ratan

I agree with ratan but want to add that for an individual, total assets are recorded at current market value. For a company, net worth uses assets as recorded on the balance sheet at historical cost minus any depreciation.

Networth = Total Assets - External Liabilities; or

Networth = Share Capital + Reserves & Surplus - Miscellaneous expenditure to the extent not written off

is share application money included in the calculation of net worth???????

please reply i m in need..............

No, share application money is not included in Net worth ..

Share capital money is shown  Under Current Liabilities until all the allotment is made..

is share premium included in calculating shareholders fund or proprietary funds or networth?

shareholders fund or proprietary funds or networth=equity share capital+reserves and surplus +preference share capital-ficititious assets

what all is included in reserves and surplus?

yes share premium is included in as under Reserves & surplus .... ( but this reserve is not a Free reserve )..

Can you please confirm.. Does "Reserves and Surplus" include non-free reserves??

And is it true "Net Worth = Net Assets = Owners' Equity = Shareholders' Equity ??

is deferred tax assets included in Net Worth???????

NET WORTH MEANS = ALL MOVEABLE & IMMOVEABLE ASSETS+ CURRENT ASSETS-CURRENT LIABILITIES-LOANS.

IS THIS CORRECT???