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Anonymous
Anonymous asked in Business & FinanceInvesting · 1 decade ago

does owner's equity means total equity?

its a business studies term..............i jut want to know how would you calculate owner's equity and does total equity and owner's equity means the same thing......thanks :) really appreciate the help people :)

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  • 1 decade ago
    Favorite Answer

    Equity can be made up of owners equity or the cash that they owner has put in to establish a firm and the other type of equity is debt equity.

    Say a firm has been set up worth $100,000

    The owner contributes a property worth $60,000 and $20,000 in cash. It is decided to borrow $20,000 in order to buy a 1 ton truck and computer and office equipment for the firm.

    The Balance Sheet will look like this:

    ASSETS

    Current Assets

    Cash at Bank $20,000

    Total Current Assets $20,000

    Non - Current Assets

    Office Equipment $2,000

    Computer $1,000

    Motor Vehicle $17,000

    Land & Buildings $60,000

    Total Non - current Assets $80,000

    Total Assets $100,00

    LIABILITIES

    Non - current Liabilities $20.000 - this is what the owner has borrowed

    EQUITY $80,000 - this is what the owner has put into the firm of his/her own money

    Total of Debt and Equity $100,000

    Total Assets MUST equal Total Debt and Equity!!!

    I hope that this explains your question.

    Cheers!!!

  • Anonymous
    4 years ago

    Owners Equity

  • ?
    Lv 4
    5 years ago

    Total Equity

  • Anonymous
    1 decade ago

    Owners equity is a percentage. Say the company is worth 100k He owns 50k in shares or assets He has 50 percent equity. The same applies in Real Estate

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  • ?
    Lv 4
    5 years ago

    Why do you care? Is it so that you can make a low ball offer? You should be worried about the value. And if it increased in value only 17% in 18 years, this is NOT a good investment. In my area (MD/DC) property values have tripled+ in the past 18 years.

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