A_TeamCurious In: 1. Financial Accounting > Shares & Debentures What is shareholder’s equity? What is shareholder’s equity? Share Facebook You must login to add an answer. Username or email* Password* Captcha* Remember Me! Forgot Password? Need An Account, Sign Up Here 1 Answer Voted Recent Vishnu_K Nil 2022-11-25T16:49:21+00:00Added an answer on November 25, 2022 at 4:49 pm This answer was edited. Shareholder’s Equity Meaning – Shareholder’s Equity is the amount invested into the Company. It represents the Net worth of the Company. It is also where the owners have the claim on the Assets after the Debts are settled. It Calculation of Shareholder’s Equity Method 1 Shareholder’s Equity = Total Assets – Total Liabilities Method 2 Shareholder’s Equity = Share Capital + Retained Earnings – Treasury Stock/Treasury Shares Components of the Shareholder’s Equity From the above Method 1, it can be understood that shareholder’s equity comprises of Net Assets = Current Assets + Non-current Assets, reduced by Net liabilities = Current liabilities + Long-term liabilities where Long-term liabilities = Long-term debts + Deferred long-term liabilities + Other liabilities Also from the method 2, Share Capital = Outstanding shares + Additional Paid-up share capital Retained Earnings are the sum of the company’s earnings after paying the dividends Treasury stocks = Shares repurchased by the company Example of Shareholder’s Equity The shareholder’s Equity is represented in the Balance Sheet as below; 0 Share Share Share on Facebook Share on Twitter Share on LinkedIn Share on WhatsApp Related Questions What are some examples of deferred revenue expenses? Are brands intangible assets? What comes in debit side of Realisation account? What is recorded in the Realisation account? What is not included in Realisation account? What is recorded on the credit side of a Realisation account? Can accounts payable have a debit balance?