plz can some one tel me "The concept of stock holder's
equity and paid in capital".
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Answer Posted / subhash a.
Dear friend,
This is the case of books of accounts of a company.
Stockholders equity has 2 components in it, such as
1. the amount brought in as "paid in share capital" (i.e.,
the money brought in by business by selling the shares of
the concerned company", and
2. the amount retained in business by ploughing back profits
earned by business operations (i.e., the amount stood in
"reserves & surplus")
First one is "paid in capital".
And the both constitute "stockholders' equity".
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