what is the net assets and equity | meaning and How To calculate
The net assets and the equity are the same and the word for it varies depending on the method of calculation
how to calculate net assets?
| particular | amount |
|---|---|
fixed Assets | |
| Property, Plant and Equipment (PPE) | |
| Plant & Machinery | 14 000 |
| Land & Buildings | 6000 |
| Investment | 7000 |
current Assets | |
| Inventory | 8000 |
| debitors | 2000 |
| Trade Receivables | 6000 |
| Cash in hand | 6000 |
| bank | 13 000 |
total asset | _______ 63 000 _______ |
(-) Liabilities | _______ 40 000 _______ |
| preferance share capital | 14 000 |
| outsanding | 3000 |
| creditors | 6000 |
| bills payable | 8000 |
| bank loan | 9000 |
net asset | _______ 23,800 _______ |
how to calculate Equity ?
| particular | amount |
|---|---|
(-) Equity | |
| Equity Shares Capital | 15 000 |
| Reserve | 5000 |
| Retained earnings(p/l) | 3000 |
Equity | _______ 23 000 _______ |
what is a Equity
The word equity refers to the equity shareHolder-owned Portion in the company.
what is a net assets
The word net assets refers to the selling price of the company.
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