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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 :)
5 Answers
- Bella RoseLv 71 decade agoFavorite 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!!!
- Anonymous1 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 45 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.