How do I calculate shareholders equity from the following data?
htt ps://i mgur.c om/a/SkMTpBV
I added equity share, preference share, reserves and share premium, but didn't get the answer as mentioned. Any help would be appreciated.
To calculate shareholders' equity, you need to consider various components of a company's balance sheet. In this case, the information you have provided gives the details of equity share, preference share, reserves, and share premium. Here's how you can calculate shareholders' equity step by step:
Step 1: Add Equity Share Capital
Look at the balance sheet and find the value listed for "Equity Share Capital." In the provided image, it is given as 7,00,000. Add this value to the calculation.
Shareholders' Equity = Equity Share Capital
Shareholders' Equity = 7,00,000
Step 2: Add Preference Share Capital
Next, find the value of "Preference Share Capital" listed in the balance sheet. In the provided image, it is given as 3,00,000. Add this value to the calculation.
Shareholders' Equity = Equity Share Capital + Preference Share Capital
Shareholders' Equity = 7,00,000 + 3,00,000
Shareholders' Equity = 10,00,000
Step 3: Add Reserves
Now, identify the value of "Reserves" mentioned in the balance sheet. In the provided image, it is given as 6,00,000. Add this value to the previous calculation.
Shareholders' Equity = Equity Share Capital + Preference Share Capital + Reserves
Shareholders' Equity = 7,00,000 + 3,00,000 + 6,00,000
Shareholders' Equity = 16,00,000
Step 4: Add Share Premium
Lastly, locate the value of "Share Premium" from the balance sheet. In the provided image, it is given as 3,50,000. Add this value to the previous calculation.
Shareholders' Equity = Equity Share Capital + Preference Share Capital + Reserves + Share Premium
Shareholders' Equity = 7,00,000 + 3,00,000 + 6,00,000 + 3,50,000
Shareholders' Equity = 19,50,000
Therefore, the calculated shareholders' equity, based on the given information, is 19,50,000.