# Total Assets Formula  ## What is Total Assets Formula?

Assets are defined as resources owned by the company from which future economic benefits are expected to be generated. Total assets are the sum of non-current and current assets, and this total should equal the sum of stockholders’ equity and total liabilities combined.

The formula for Total Asset is:

Total Assets = Non Current Assets + Current Assets

Note:

### Examples of Total Assets Formula (with Excel Template)

Let’s see some simple to advanced examples of total to understand it better.

You can download this Total Assets Formula Excel Template here – Total Assets Formula Excel Template

#### Example # 1

The following are the asset details of a small manufacturing company for the year ended 31st March 2019.

• Land = Rs.10,00,000
• Machinery = Rs.5,00,000
• Buildings = Rs.6,00,000
• Sundry Debtors = Rs.2,00,000
• Inventory = Rs.3,50,000
• Cash & Bank = Rs.1,00,000

Solution:

Use the following data for the calculation of total assets.

So, the calculation of total assets can be done as follows –

Total Assets = Land + Buildings + Machinery + Inventory + Sundry Debtors + Cash & Bank

Total Assets = 1000000+600000+500000+350000+200000+100000

In the above total assets formula, non-current assets are Land, Buildings & Machinery, otherwise known as .

Total Assets will be –

Total Assets = 2750000

#### Example # 2

The following are the asset details of a medium-sized company for the year ended 31st March 2019.

• Land = Rs.20,00,000
• Inventory = Rs. 40,00,000
• Buildings = Rs.60,00,000
• Sundry Debtors = Rs. 30,00,000
• Vehicles = Rs.22,00,000
• Cash & Bank = Rs. 25,00,000

Solution:

Note:

• on Buildings = Rs. 20,00,000
• Accumulated Depreciation on Vehicles = Rs. 6,00,000
• Accumulated Depreciation on Machinery = Rs. 3,50,000

So, the calculation of total assets can be done as follows –

Total Assets = Land + Buildings – Acc. + Vehicles – Acc. Depreciation on Vehicles + Machinery – Acc. Depreciation on Machinery + Inventory + Sundry Debtors + Cash & Bank

Total Assets = 2000000+6000000-2000000+2200000-600000+1500000-350000+4000000+3000000+2500000

Total Assets will be –

Total Assets = 18250000

In this example, we are observing the concept of Gross vs. . While calculating total assets, it is important to note that the fixed assets should be stated at Net Value (Gross Value – Accumulated depreciation). It is assumed that the building, vehicle and machinery value provided is gross (at cost).

Hence, In the above total assets equation – Accumulated depreciation(Building, Vehicles, machinery) are subtracted from the gross value.

#### Example # 3

The following are the asset details of a large company for the year ended 31st March 2019.

• Land =Rs.5,00,000
• Inventory =Rs. 50,00,000
• Buildings =Rs.70,00,000
• Sundry Debtors =Rs. 20,00,000
• Vehicles =Rs.12,00,000
• Cash & Bank =Rs. 32,00,000
• Furniture =Rs.40,00,000
• Prepaid Expenses =Rs. 10,00,000
• Bills Receivable =Rs.15,00,000
• Bad Debts Provision =Rs. 1,50,000

So, the calculation of total assets can be done as follows –

Total Assets = Land + Buildings + Vehicles + Furniture + Bills Receivable + Inventory + Prepaid Expenses + Sundry Debtors – + Cash & Bank

Total Assets = 500000+7000000+1200000+4000000+1500000+5000000+1000000+2000000+3200000-150000

Total Assets will be –

In the above total assets equation, current assets are Bills Receivable, Inventory, , Sundry Debtors, and Cash & Bank.

Total Assets = 25250000

In the above example, it is important to note the following distinctive assets:-

• against which the company will receive payment in the future. Generally, these are issued when the company has provided a (i.e., with no inflow of cash on sales).
• Prepaid expenses reported as a current asset, represents the amount of prepaid expense which will be used up within one (current) financial year. This represents the payment made by the company for goods or services to be received in the future.
• Debtors are to be stated at ‘net value,’ which is after subtracting the provision for bad and doubtful debts. This provision indicates the extent of receivables which the company is not confident of retrieving from the debtors.

#### Example # 4

The following are the asset details of a large manufacturing company for the year ended 31st March 2019.

• Land = Rs20,00,000
• Inventory = Rs. 40,00,000
• Buildings = Rs60,00,000
• Sundry Debtors = Rs. 30,00,000
• Vehicles = Rs22,00,000
• Cash & Bank = Rs. 25,00,000
• Furniture = Rs15,00,000
• Investments = Rs40,00,000
• Goodwill= Rs. 6,50,000
• Machinery = Rs80,00,000

Note:

• Accumulated Depreciation on Buildings = Rs. 20,00,000
• Accumulated Depreciation on Vehicles = Rs. 6,00,000
• Accumulated Depreciation on Machinery = Rs. 3,50,000
• Furniture was purchased on the last day of the financial year.

Solution:

So, the formula of total assets and calculation can be done as follows –

Total Assets = Land + Buildings – Acc. + Vehicles – Acc. Depreciation on Vehicles + Machinery – Acc. Depreciation on Machinery + Furniture + Investments + Trademarks + Goodwill + Inventory + Sundry Debtors + Cash & Bank

Total Assets = 2000000 + 6000000 + 2200000 +8000000 + 1500000 + 4000000 + 2700000 +650000 + 4000000 + 3000000 + 2500000 – 2000000 – 600000 – 3500000

Total Assets will be –

Total Assets = 30450000

In the above example, it is important to note the following distinctive assets:-

• Since the furniture was purchased on the last day of the financial year, there was no depreciation for the same.
• Investments may be considered as long-term since no specification is made regarding the same. This indicates they are assets that a company intends to hold for more than a year, i.e., securities, real estate, etc.
• Trademarks are that represent the legal right to use a name, logo, or other identifiers in business. When a trademark is assigned a value as in this example, it is usually the fair value of the same when purchased from someone else.
• is also an intangible asset that represents the difference between the market value of the company and (as per Balance Sheet).

### Conclusion

The various types of assets can be categorized into Non-Current and Current. This would be dependent on their usage and significance to the operations of the company. Broadly, however, total assets are calculated by the summation of all value of current and non-current assets after adjusting for accumulated depreciation and any or provision of receivables. Other variations are dependent on the applicability of accounting standards.

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