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