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

Author: Vikas Yadav

Vikas Yadav is the chief author at MonetarySection. He is an MBA (finance) from NCU Gurgaon. He started his career in 2014 and at the same time he started this website to educate people about finance.

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