Capital Surplus

Business, Legal & Accounting Glossary

Definition: Capital Surplus


Capital Surplus

Quick Summary of Capital Surplus


Balance sheet item under shareholders’ equity. Increases by the value above an original par value per share that newly issued shares are sold for. The amount of the raised equity capital that fall within the original par value per share increase the stock capital line item.




Full Definition of Capital Surplus


Capital surplus, also known as share premium, is the surplus that results when common stock is sold for more than its par value. Capital surplus is defined as equity or net value that is not otherwise classified as capital stock or retained earnings.

Previously, capital surplus was defined as the account Paid-in Capital in Excess of Par – Common Stock and the account Premium on Common Stock. In today’s balance sheets, capital surplus is referred to as paid-in surplus or paid-in capital [in excess of par].


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Definition Sources


Definitions for Capital Surplus are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 25th January, 2022 | 0 Views.