Question

Surplus capital method is also known as​

Answer 1

Capital surplus, or share premium, most commonly refers to the surplus resulting after common stock is sold for more than its par value. Capital surplus includes equity or net worth otherwise not classifiable as capital stock or retained earnings.

Answer 2

Introduction:

Capital surplus is basically the extra amount left when common stock is sold at a value which is more than its par value.

Explanation:

Capital surplus can also come from the revenues of stock purchased and resold, as well as from donated shares.

Capital surplus and retained earnings are both components of stockholders' equity, but they vary fundamentally.

Capital surplus, also called as the share premium.