Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

capital surplus

Read a random definition: formula instruction

A quick definition of capital surplus:

Capital surplus is the extra money a company has after it has paid all its debts and expenses. It can come from things like selling stock for more than it's worth or getting donations. This money is different from the money the company has earned from its business. It's like having extra money in your piggy bank after you've paid for everything you need. The company can use this extra money for things like buying new equipment or expanding its business.

A more thorough explanation:

Definition: Capital surplus is the excess of a corporation's net worth beyond the par value of its capital stock. It is a type of surplus that is not earned from the accumulation of profits, but rather created by financial reorganization or gifts.

Examples:

  • Paid-in surplus: This is the surplus gained by the sale, exchange, or issuance of capital stock at a price above par value. For example, if a company issues 100 shares of stock at $50 per share, but the par value is only $10 per share, the paid-in surplus would be $4,000 ($50 - $10 = $40 x 100 shares).
  • Donated surplus: This is the increase in the shareholders' equity account resulting from assets (such as stock) contributed to a corporation. For example, if a shareholder donates 50 shares of stock to a company, and the par value is $10 per share, the donated surplus would be $500 (50 shares x $10 per share).
  • Appropriated surplus: This is the portion of surplus earmarked for a specific purpose. For example, a company may set aside a portion of its surplus for research and development or to pay off debt.

These examples illustrate how capital surplus is different from earned surplus, which is the surplus gained from a company's profits. Capital surplus is created through financial transactions or gifts, and can be used for various purposes such as investments or paying off debt.

capital structure | capital transaction

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
LSD+ is ad-free, with DMs, discounts, case briefs & more.