Is capital surplus the same as capital stock?

Capital surplus includes equity or net worth otherwise not classifiable as capital stock or retained earnings. In the past, the account Paid-in Capital in Excess of Par – Common Stock and the account Premium on Common Stock were referred to as capital surplus.

What is total capital stock?

The capital stock is the total amount of share capital (including equity capital and preference capital) that has been issued by a company, and the same can be found in the balance sheet in the column of “shareholder’s equity.” It is a means of raising funds by the company to meet its various business goals.

What is included in total capital stock?

What Is Capital Stock? Capital stock is the amount of common and preferred shares that a company is authorized to issue, according to its corporate charter. Capital stock can only be issued by the company and is the maximum number of shares that can ever be outstanding.

How do you calculate reserves and surplus?

See the image below:

1. The current year (FY14) profit of Rs.
2. Previous year’s balance plus this year’s profit adds up to Rs.
3. After making the necessary apportions the company has Rs.
4. Total Reserves and Surplus = Capital reserve + securities premium reserve + general reserves + surplus for the year.

What does it mean to have capital surplus?

Capital surplus is used to account for that amount which a firm raises in excess of the par value (nominal value) of the shares (common stock).. Investopedia has a much simpler answer.

What does surplus mean on a balance sheet?

Most balance sheets today call capital surplus paid-in surplus or paid-in capital [in excess of par]. Capital surplus, or premium, is the excess remaining after common stock is sold for more than its par value. Capital surplus can also result from the proceeds of stock bought back and then resold and from donated stock.

What is capital and surplus in § 3.701?

§ 3.701 Capital and surplus. For purposes of determining statutory limits that are based on the amount of a national bank’s capital and/or surplus, the provisions of this section are to be used, rather than the definitions of capital contained in subparts A through J of this part. (a) Capital.

What is a surplus store in the United States?

A surplus store or disposals store in the Commonwealth of Nations sells items that are used, or purchased but unused, and no longer needed. The surplus is often military, government or industrial excess often called army-navy stores or war surplus stores in the United States.