net asset minus capital reserve is

    प्रश्नकर्ता bhagyashree
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    उत्तरकर्ता Shivani
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    Net Assets minus Capital Reserve is known as a purchase consideration.

    What is a net asset:

    • Net assets represent the total value of an organization’s assets minus all its liabilities to outsiders and its own stakeholders.
    • Capital employed refers to the amount of money or capital a business organization has invested in order to generate profits.

    How to calculate net asset:

    • (Total Fixed Assets + Total Current Assets) – (Total Current Liabilities + Total Long Term Liabilities).

    How net assets will be denoted?

    • When the amount of consideration is less than the value of the net assets available, the difference may be treated as capital reserve.

    What is net asset account?

    • Net assets are the representation of the difference between assets and liabilities.
    • Net worth is what would be left if your company sold all of its assets and paid off all of its liabilities.
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