How To Calculate Total Assets

Total assets include both Current Assets and Fixed Assets / Non Current Assets. From the Basic Accounting Equation. 

We know that Assets is equal to Liabilities plus Owner’s Equity or Equity as shown below:

Total Assets Formula:

Assets = Liabilities + Owner’s Equity

 

For Example, if Total Liabilities = Rs. 30000 and owner’s equity = Rs. 70000, then total assets are equal to 30000 + 70000 = 100000.

Different accounting ratios are used to find out the value of total assets such as Total Asset Ratio (Total Liabilities / Total Assets ), Total Assets Turnover (Net Sales / Average Total Assets), etc. Total assets are shown on the Balance Sheet on assets side.