Calculation of Net worth of Company ?

Third party reference

It's necessary to determine the net worth of company to determine creditworthiness because it gives a snapshot of the company's investment history. Also called owner's equity, Shareholders' equity, or net assets.

It can be calculated from Assets part of Balance sheet as well as taking Liability part

Part I Assets

Net Fixed Assets + Net Working Capital - External Liability (Long term Borrowing)

• Net Fixed Assets = Tangible Fixed Assets -Deprecation-Sales-Disposal

• Net Working Capital =Current Assets -Current Liability

• Current Assets =Inventories+Debtors+Cash & Cash Equivalent +Receivables/Accruals+ Short term loans and advances+Marketable Investment

• Current Liability = Sundry Creditors (For Goods)+ Outstanding Expenses (for services)+ Short Term Loans & Advances(Cr.)+ Bank Over draft/Cash Credit+Provision for tax+Purpose or unclaimed Dividend

Part II Liability 

Equity Share Capital +Preference Share Capital + Reserve & Surplus - Accumulated Losses

• Accumulated Losses=Fictitious Assets (Preliminary expenses/losses/Miscellaneous expense)

Deferred tax assets/liability be considerable while computing net worth ?

Note: Please note that Differed Assets and liability are also considered while Calculating Net Worth

The deferred tax amount is included in the liabilities section of the balance sheet. Since net worth is the difference between total assets and total liabilities, deferred tax is subtracted from assets when calculating net worth

Does it include share application money pending for allotment ?

Note: Amount pending for allotment is not included in the network as because there is no contribution of amount pending for allotment in generation of Shareholders worth.