Earned surplus - sustany/dvg GitHub Wiki

Earned surplus, is defined as the balance of the net profits, net income, and gains of a corporation after deducting losses and distributions to stockholders and transfers to capital stock accounts, which is not taxable as a dividend.�

In the context of corporations and business organizations, earned surplus is the earnings resulting from the profitable operations of the company.�Also known as retained earnings, it is the portion of the profit that the company retains in order to reinvest in the business or repay debt.