Total Assets Formula

What is the Total Assets Formula?

Assets are defined as resources owned by the company from which future economic benefits are expected to be generated. sum assets are the sum of non-current and stream assets, and this sum should equal the sum of stockholders ’ equity and total liabilities combined .
The recipe for sum Asset is :
Total Assets = Non Current Assets + Current Assets
Total-Assets-Formula
Note:

Examples of Total Assets Formula (with Excel Template)

Let ’ s see some simple to advanced examples of the total assets equation Assets Equation Total Assets is the aggregate of liabilities and stockholder funds. It can besides be computed by combining current and noncurrent assets. read more to understand it better .
You can download this sum Assets Formula Excel Template here – full Assets Formula Excel Template

Example # 1

The following are the asset details of a small manufacturing company for the year ended 31st March 2019.

  • Land = Rs.10,00,000
  • Machinery = Rs.5,00,000
  • Buildings = Rs.6,00,000
  • Sundry Debtors = Rs.2,00,000
  • Inventory = Rs.3,50,000
  • Cash & Bank = Rs.1,00,000

Solution:
Use the follow data for the calculation of full assets .
Total Assets Formula Example 1
so, the calculation of total assets can be done as follows –
Example 1.1
Total Assets = Land + Buildings + Machinery + Inventory + Sundry Debtors + Cash & Bank
entire Assets = 1000000+600000+500000+350000+200000+100000
In the above entire assets formula, non-current assets are Land, Buildings & Machinery, differently known as fixed assets Fixed Assets Fixed assets are assets that are held for the long term and are not expected to be converted into cash in a short time period of fourth dimension. Plant and machinery, domain and buildings, furniture, computers, copyright, and vehicles are all examples. read more .
entire Assets will be –
Total Assets Formula Example 1.2
Total Assets = 2750000
Hence, the total assets Total Assets Total Assets is the union of a company ‘s current and noncurrent assets. full assets besides equals to the kernel of full liabilities and total stockholder funds. full Assets = Liabilities + Shareholder Equity read more would be calculated as Rs. 27,50,000 .

Example # 2

The following are the asset details of a medium-sized company for the year ended 31st March 2019.

  • Land = Rs.20,00,000
  • Inventory = Rs. 40,00,000
  • Buildings = Rs.60,00,000
  • Sundry Debtors = Rs. 30,00,000
  • Vehicles = Rs.22,00,000
  • Cash & Bank = Rs. 25,00,000

Solution:
Note:
then, the calculation of sum assets can be done as follows –
Total Assets Formula Example 2.0.1
Total Assets = Land + Buildings – Acc. Depreciation on BuildingsDepreciation On BuildingsDepreciation of building refers to reducing the recorded cost of a building until the value of the structure either becomes zero or reaches its salvage value. In addition, it helps to map the revenue in the form of lease rental generated during the corresponding expenses.read more + Vehicles – Acc. Depreciation on Vehicles + Machinery – Acc. Depreciation on Machinery + Inventory + Sundry Debtors + Cash & Bank
sum Assets = 2000000+6000000-2000000+2200000-600000+1500000-350000+4000000+3000000+2500000
entire Assets will be –
Example 2.0.2
Total Assets = 18250000
Hence, the total assets Total Assets Total Assets is the sum of a company ‘s stream and noncurrent assets. total assets besides equals to the union of total liabilities and entire stockholder funds. full Assets = Liabilities + Shareholder Equity read more would be calculated as Rs. 1,82,50,000 .
In this model, we observe the concept of Gross vanadium. net Book Value Net Book Value Net book value refers to the carrying value of the bodied assets acquired after accounting for disparagement, as reported in the company ‘s balance wheel sheet. An asset ‘s net book prize is calculated as “ net Book Value = Original Purchase Cost – Accumulated Depreciation ”. read more. While calculating total assets, it is significant to note that the sterilize assets should be stated at Net Value ( Gross Value – Accumulated disparagement ). It is assumed that the build, vehicle, and machinery value provided is gross ( at cost ).

Hence, In the above sum assets equation – Accumulated depreciation ( Building, Vehicles, machinery ) are subtracted from the gross value .

Example # 3

The following are the asset details of a large company for the year ended 31st March 2019.

  • Land =Rs.5,00,000
  • Inventory =Rs. 50,00,000
  • Buildings =Rs.70,00,000
  • Sundry Debtors =Rs. 20,00,000
  • Vehicles =Rs.12,00,000
  • Cash & Bank =Rs. 32,00,000
  • Furniture =Rs.40,00,000
  • Prepaid Expenses =Rs. 10,00,000
  • Bills Receivable =Rs.15,00,000
  • Bad Debts Provision =Rs. 1,50,000

indeed, the calculation of sum assets can be done as follows –
Example 3.1
Total Assets = Land + Buildings + Vehicles + Furniture + Bills Receivable + Inventory + Prepaid Expenses + Sundry Debtors – Bad Debts ProvisionBad Debts ProvisionA bad debt provision refers to the reserve made by a company to set aside an amount computed as a specific percentage of overall doubtful or bad debts that has to be written off in the next year.read more + Cash & Bank
total Assets = 500000+7000000+1200000+4000000+1500000+5000000+1000000+2000000+3200000-150000
entire Assets will be –
Total Assets Formula Example 3.3
In the above sum assets equation, current assets are Bills Receivable, Inventory, Prepaid Expense Prepaid Expense Prepaid expenses refer to advance payments made by a firm whose benefits are acquired in the future. requital for the goods is made in the current account period, but the manner of speaking is received in the approaching account period. read more, Sundry Debtors, and Cash & Bank .
Total Assets = 25250000
Hence, the total assets Total Assets Total Assets is the sum of a ship’s company ‘s current and noncurrent assets. sum assets besides equals to the sum of total liabilities and total stockholder funds. full Assets = Liabilities + Shareholder Equity read more would be calculated as Rs. 2,52,50,000 .
In the above example, it is important to note the following classifiable assets : –

  • Prepaid expenses reported as a current asset represent the prepaid expense amount that will be used up within one (current) financial year. This represents the payment made by the company for goods or services to be received in the future.
  • Debtors are to be stated at ‘net value’ after subtracting the provision for bad and doubtful debts. This provision indicates the extent of receivables that the company is not confident of retrieving from the debtors.

Example # 4

The following are the asset details of a large manufacturing company for the year ended 31st March 2019.

  • Land = Rs20,00,000
  • Inventory = Rs. 40,00,000
  • Buildings = Rs60,00,000
  • Sundry Debtors = Rs. 30,00,000
  • Vehicles = Rs22,00,000
  • Cash & Bank = Rs. 25,00,000
  • Furniture = Rs15,00,000
  • Trademarks = Rs. 27,00,000
  • Investments = Rs40,00,000
  • Goodwill= Rs. 6,50,000
  • Machinery = Rs80,00,000

Note:

  • Accumulated Depreciation on Buildings = Rs. 20,00,000
  • Accumulated Depreciation on Vehicles = Rs. 6,00,000
  • Accumulated Depreciation on Machinery = Rs. 3,50,000
  • Furniture was purchased on the last day of the financial year.

Solution:
indeed, the convention of entire assets and calculation can be done as follows –
Total Assets Formula Example 4.1
Total Assets = Land + Buildings – Acc. Depreciation on BuildingsDepreciation On BuildingsDepreciation of building refers to reducing the recorded cost of a building until the value of the structure either becomes zero or reaches its salvage value. In addition, it helps to map the revenue in the form of lease rental generated during the corresponding expenses.read more + Vehicles – Acc. Depreciation on Vehicles + Machinery – Acc. Depreciation on Machinery + Furniture + Investments + Trademarks + Goodwill + Inventory + Sundry Debtors + Cash & Bank
total Assets = 2000000 + 6000000 + 2200000 +8000000 + 1500000 + 4000000 + 2700000 +650000 + 4000000 + 3000000 + 2500000 – 2000000 – 600000 – 3500000
entire Assets will be –
Example 4.2
Total Assets = 30450000
Hence, the total assets Total Assets Total Assets is the sum of a caller ‘s current and noncurrent assets. sum assets besides equals to the sum of sum liabilities and sum stockholder funds. full Assets = Liabilities + Shareholder Equity read more would be calculated as Rs. 3,04,50,000 .
In the above example, it is crucial to note the following classifiable assets : –

Conclusion

The respective types of assets Various Types Of Assets Assets are the resources owned by individuals, companies, or governments expected to generate future cash flows over a long time period. There are broadly three types of asset distribution : 1. Based on convertibility ( current and non-current assets ), 2. physical being ( tangible and intangible assets ), 3. use ( operating and non-operating assets ) read more can be categorized into Non-Current and Current. This would depend on their custom and significance to the company ’ second operations. Broadly, however, sum assets are calculated by the summation of all current and noncurrent assets prize after adjusting for accumulated depreciation and any write-off Write-off Write off is the decrease in the value of the assets that were present in the books of accounts of the company on a especial period of meter and are recorded as the account expense against the requital not received or the losses on the assets. read more or planning of receivables. other variations are dependent on the applicability of account standards.

Recommended Articles

This has been a guide to the Total Assets Formula. here we discuss how to calculate sum assets and examples and a downloadable excel template. You can learn more about fiscal analysis from the following articles –

source : https://www.peterswar.net
Category : Finance

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