
Commerce Career Club
June 12, 2025 at 12:46 PM
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*Equity*
On a balance sheet, equity is found by taking the difference between liabilities and assets. Owner's equity is a different term for how much of something a person or business actually owns. Property equity shows how much of a mortgage has been paid off, and stock equity shows how much of a company is owned through stock.
*Example of Equity* :
If you own a house worth ₹50 lakh and have ₹20 lakh left to pay on the loan, your equity is ₹30 lakh (₹50L - ₹20L).
Similarly, if a business has ₹10 crore in assets and ₹4 crore in liabilities, its equity is ₹6 crore (₹10C - ₹4C).
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