How to Figure Contributed Capital in Accounting
Contributed capital refers to funds collected from third-party investors who purchase stock shares directly from the corporation. Such funds differ from those acquired from investor-to-investor stock transactions. In particular, contributed capital is composed of two separate accounting entities: stated capital and paid-in capital. The former refers to the stocks' actual values, while the latter identifies those funds that went above and beyond the standard price. To figure contributed capital according to the rules of accounting, you need only add together stated capital and paid-in capital.
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Instructions
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Calculate stated capital by adding together the standard par values of the stock shares that were sold. For instance, if your company sold fictional stocks ATA, BTA and CTA, and their share values are $20, $30 and $40, respectively, add $20, $30 and $40 to get a sum of $90.
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Add together the funds that were paid up and beyond the stocks' par values to calculate paid-in capital. Given stocks ATA, BTA and CTA, if the investors who purchased them paid extra amounts equal to $10, $20 and $30, respectively, then add $10, $20 and $30 to get a sum of $60.
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Figure contributed capital by finding the sum of stated capital and paid-in capital. Given $90 stated capital and $60 paid-in capital, add $90 and $60 to get contributed capital of $150.
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