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What is equity? and how it is calculated?
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Answer / p.giri kumar
Amount owed by the business to Shareholoders. It is
calculated as followes
Paid up Capital + Free Reserves + Credit balance of P&L -
Accumulated losses
| Is This Answer Correct ? | 4 Yes | 1 No |
Answer / priya
Mr.Vijay Equity in simple sense is capital we have an
equation
Equity = Assets -Liability
you can understand this with your balance sheet.
As capital differs from one person to another in same way
we have Equity equations for company accounts which is your
first answer by one of our friend.This is the basic
equation.
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / pallavi tomar
capital generally composed of fund, that fund breaks into
share'sand those share divided into shareholder as a equity
shareholder.Total assets minus total liabilities; here also
called shareholder's equity or net worth or book value
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / anoj
The total claim against an enterprise is known as
equity.equity= owners claim(asset)+outsiders claim
(liabilities)
| Is This Answer Correct ? | 0 Yes | 0 No |
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