Networth

Under normal circumstances with no loss being suffered, networth=capital+reserves.

However in this case, networth = capital+reserves - accumulated losses

=17 lacs-20.07lacs = -3.07 lacs. Therefore networth is negative.

Sometimes misc. assets is also deducted to find out TANGIBLE networth. So in that case, networth will be 17-20.07-0.11= -3.18 lacs.

Net worth = Total Assets - Current Liabilities

Hence,

N.W will be

Rs [ ( 0.55+11.65+0.11) - ( 8.9 )] Lacs = Rs. 3.41 Lacs

The Miscellaneous expenses to the extent not written off or the preliminary expenses should not be considered in calculating net worth...

Outside loans should also be deducted as it is a outside liability, Even the loan taken from director should be deducted.

so the correct net worth is

Assets (FA 0.55+ CA 11.65) - Liabilities (CL 8.90 + Loans 6.5) = Networth = (3.2)

negative net-worth

First your balance sheet is out by 0.02 lacs.

Formula of Networth is Share Capital + Reserves and Surplus - Misc. Exps.

Therefore Networth is -3.18 lacs.

One may even calculate considering Total Assets - Liabilities ( Except Share Capital & reserves & Surplus) - Misc. Exps. Then it will reflect -3.20 Lacs ( difference is due to difference in balance sheet )

One may calaculate by any formula, answer will be same by both the methods.

Regards,

Bhavin