Help with Understanding Paid Up Capital (Reading Financial Statement)

pilot_1's picture
Rank: Chimp | 10

Hello WSO,

I'm looking for some assistance in calculating the "unencumbered paid up capital" for this company:

Balance sheet shows:

Shareholder equity:

share capital 243,000
contributed surplus 65,000
accumulated other comprehensive income 300
retained earnings (210,000)
TOTAL 98,300

Share Capital Section:

Common shares outstanding 120,000,000 worth $245,000 at beginning of year
Share purchase loans ($2,000)
Common shares outstanding 120,000,000 worth $243,000 at end of year

From all of the reading I've been doing online, I'm getting $243,000 as the paid up capital (which equals share capital).

However, the shareholder equity is only $98,000.


  1. Is the paid up capital equal to share capital?
  2. Is the PUC unecumbered? Is shareholder equity also unecumbered?

Thank you so much - I've been struggling to understand this on my own.

Comments (1)

Mar 12, 2019