Excess actual capital over proportionate capital. Answer in a word / phrase / term.
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Excess actual capital over proportionate capital⤵️⤵️⤵️⤵️
(Surplus.)
Excess actual capital over proportionate capital⤵️⤵️⤵️⤵️
(Surplus.)
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Answer:
Excess actual capital over proportionate capital is termed as surplus capital. The word 'surplus' itself means 'excess'. This is also alternatively known as share premium.
It is the excess amount or additional paid in capital raised by any organisation over the value of their shares. Hence, it indicates the difference between the par value of shares and the market value of the same shares.
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