Net worth Vs Net assets.

Both are synonyms...in company perspective it's net assets of the company, where as in individual perspective its net worth What is your net worth

Shrikant

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27-Mar-24 15:04

I need the computation of Networth in accounting purposes

Thread Starter

1 Minute Review

CA Inter

★ 405

27-Mar-24 15:07

There's no much difference I guess ..share capital+reserves and surplus =net worth Assets -outstanding liabilities =net assets

Shrikant

CA Inter

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27-Mar-24 15:19

Both are different Net worth represents companies worth by capital holding( i.e all capital (eq+pre) + all reserve (excluding revaluation) Whereas net assets are ( total assets - current liabilities) or (fixed assets + working capital) These formula represent that total assets holding after deduction of our current liabilities to be payable in short term The above differentiation will also be help you in fm ( ratios analysis)

Saiswaroop PSSSM

CA Inter

★ 105

27-Mar-24 15:51

How net assets holding without removing all the liabilities

Shrikant

CA Inter

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27-Mar-24 15:56

As the name itself Indicates net assets which means assets after deduction of all the liabilities

Shrikant

CA Inter

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27-Mar-24 15:59

Kindly slove ratio analysis to understand difference all word doesn't give direct meaning there will be an inner meaning to it

Saiswaroop PSSSM

CA Inter

★ 105

27-Mar-24 16:15

She asked in accounting perspective, not in F.M perspective ,ratio analysis primarily used for comparison of 2 variables which doesn't follow any such accounting rules .. unlike in accounting

Shrikant

CA Inter

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27-Mar-24 16:29

As it's mentioned that ratio indicates proportion of owners funds to the total funds invested in the business

Shrikant

CA Inter

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27-Mar-24 16:32

Aray baba!! 😇 Perspective are same yara! Okay then send attachment of proof that net worth and net assets are same accounting And also accounting rules follow such

Saiswaroop PSSSM

CA Inter

★ 105

27-Mar-24 16:43

For your reference

Shrikant

CA Inter

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27-Mar-24 17:06

Yeah then we both right in two perspective 😇 I think she had got full information related in total syllabus 😄

Saiswaroop PSSSM

CA Inter

★ 105

27-Mar-24 17:22

Yeah , but deducted total liabilities not just current liabilities

Shrikant

CA Inter

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27-Mar-24 17:57

**deduct

Shrikant

CA Inter

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27-Mar-24 17:58

Yeah in accounts but remember different in fm

Saiswaroop PSSSM

CA Inter

★ 105

27-Mar-24 18:23