Net Assets – Definition, Formula and Example

Net assets is the difference of total assets and total liabilities of a firm.


Net Assets Formula:

Net Assets

Net Assets Example:

The accountant of XYX Ltd comes with the below figure.

Total assets of company = INR 10,00,000

Total liabilities of company = INR 7,00,000

Management asks to calculate the net assets. He follows the order and makes his calculation as given below:

Net Assets = 10,00,000 – 7,00,000 = INR 3,00,000

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