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Turnover, networth

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Madhav Jha

23 Points Posted on 20 June 2020

pls tell me difference btween

1. Paid up share capital
2. net worth
3. turnover

Replies (3)

Quick Summary

This discussion clarifies the distinctions between three key financial terms: paid-up share capital, net worth, and turnover. Paid-up share capital represents funds raised from issuing shares. Net worth, also known as equity, is calculated as assets minus liabilities, reflecting ownership interest. Turnover, often discussed in terms of efficiency ratios like sales or asset turnover, refers to the cycle of generating revenue through operations.

yasaswi gomes

My grammar is 💯 good I

7306 Points Posted on 20 June 2020

Paid up share capital is the amount received from application, Allotment, first and final call of share issue.

Networth= Assets-Liabilities. This is also called as Equity which has ownership interest in assets.

Turnover is a cycle where money is made from operatins. Eg. operations- purchasing, processing, selling, collecting cash and clearing liabilities.

Madhav Jha

23 Points Posted on 20 June 2020

Thanks

yasaswi gomes

My grammar is 💯 good I

7306 Points Posted on 20 June 2020

No problem. This turnover is not a real definition in accounts and commonly used in finance topics. There are different turnover ratios like sales turnover, asset turnover, inventory turnover etc which are used to measure efficiency and utilisation of resources in a company. Please check other versions online for more clarity.