(c) Net-worth:
Given below is a sample balance sheet:
(c) Net-worth:
Equity Capital and Reserves & Surplus together represent Shareholder’s Funds also known as Net-worth or owners’ capital.
In the above example, adding Equity Capital of Rs. 100 and R&S of Rs. 28, we get Net-worth (Shareholder’s Funds) as Rs. 128.
