Sunday, 4 February 2018

NET WORTH-AN INDICATOR OF FINANCIAL POSITION

Net worth represents the financial position of an individual and business entity.

Now the question  arises how to calculate net worth:

As you have learned about Assets and  Liabilities in our earlier posts it would be very simple for you.

There is a very simple formula for calculating net worth:
 To make it more clear,let's have a look below at the following representation of assets and liabilities of an individual:
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Now net worth of the individual=₹35,80,000-₹27,00,000=8,80,000

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