Question

Excess of proportionate capital over actual capital. Answer in a word / phrase / term.

Answer 1

Hey mate ✌️✌️

Excess of proportionate capital over actual capital⤵️⤵️⤵️


(Surplus)

Answer 2

Excess of proportionate capital over actual capital is known as surplus capital.

It can be alternatively referred to as additional paid-in capital.

This surplus or excess capital has two fates:

1. Can be withdrawn by old partners as and when required.

2. Can be transferred entirely to the current accounts.

* It is alternatively referred to as share premium and arises in situations where a company issues common stock and sells it at a higher price than the par value.