What is equity? and how it is calculated?
- 4 Answers
- 5986 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
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 |
What is the entry for Salary for the month of March if the books closed on 31-03. Before 31st March and after 31st March?
Define a Promissory Note
what is trailbalance..?
What Will Be The Journal Entry In Case Of Credit Note In The Books Of The Sender?
2. You are required to prepare a Profit & Loss Account for the year ending 31st December, 2007 and the Balance Sheet on that date. The Trial Balance of XYZ Ltd. for the year ended 31st December 2007 is as follows:- Trial Balance of XYZ Ltd. as on 31st Dec. 2007 Debit Balances Rs. Credit Balances Rs. Materials used 3,50,000 Sales(including 2% Sales tax) 9,18,000 Cost of Labour 1,50,000 Sale of Scrap 100 Stock, finished and work in process on 31st December, 2006 50,000 Rent received 2,000 Wages : Factory Staff 15,000 Discounts 2,750 Directors Remuneration 50,000 Recovered against fire claim re : Stock 5,000 Salaries : Clerical Staff 75,000 Capital : Equity 25,000 Insurances : Workmen’s Compensation 1,500 Preference- 9% 8,000 General, fire etc. 2,000 Creditors 1,56,000 Directors’ Life Insurance 1,500 Provision for Taxation 1,05,000 Maintenance : Buildings 1,000 Profit & Loss Account 13,750 Plant and Machinery 12,500 Rent and Rates of premises and hire of plant 20,000 Heat, Light and Power 15,000 Experimental and Laboratory Expenses 10,000 Canteen Expenses 5,000 Staff Welfare expenses 2,500 Motor Expenses 12,500 Professional Charges 2,800 Postage and Telephone 3,500 Books, Printing and Stationery 11,000 Sundry expenses 10,000 Carriage and Packing on Sales 3,300 Discounts 5,000 Debtors 1,78,000 Freehold Property 50,000 Plant and Machinery 12,500 Fixtures and Fittings – Offices 3,500 Office machinery and Equipment 3,000 Motor Car and Van 6,500 Stock of materials on 31st Dec. 2007 1,20,000 Bank 38,000 Sales Tax Paid 15,000 12,35,600 12,35,600 Depreciation is to be provided at the following rates: Plant and Machinery 10% Fixture and Fittings 05% Office Machinery, etc. 10% Motor Vans and Cars 25% The stock of finished goods and work in progress as on 31st December, 2007 was Rs. 35,000. Provide for preference dividend and ordinary dividend at 10%. The total taxation liability is estimated at Rs.1,50,000 of which Rs. 75,000 relates to the current year. Debtors include Rs. 10,000 deposited as security against government contracts. The Works Manager is paid partly by salary and partly by a commission; he is entitled to a commission of 5% on the amount by which the surplus in the factory cost exceeds 20% of the sales for the period. Charge the commission if any in the Profit and Loss Account.
What is bank Reconciliation Statement?
what is debenture ?
2 Answers Capital IQ, Genpact,
Rams due of Rs 32500/- was settled thru adjustment of security deposit Rs 12000/-and the balance in cash.pass necessary entry
what is minority interest?
what is contingent asset
Expand G O P I O
how many state comes in eastern region of india?
4 Answers Infosys, State Bank Of India SBI,
Audit 
