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 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 founded MonetarySection.com in 2014 and is responsible for everything published on it. He holds an MBA from NCU (formerly ITM), Gurugram, and writes about accounting, payroll and personal finance for Indian readers. Facts and figures are checked against official sources such as the Income Tax Department, RBI and IRDAI. View all posts by Vikas Yadav