What Is Contributed Capital? Contributed capital, also known as paid-in capital, is the cash and other assets that shareholders have given a company in exchange for stock.

What is contributed capital?

Contributed capital (also known as the paid-in capital) is the total value of a company's equity purchased by investors directly from a company. In other words, it indicates the total amount of money that the shareholders paid to a company to acquire their stakes in it.

Is contributed capital an expense?

Treasury stock is reported as a reduction of stockholders' equity. Contributed capital affects the income statement through revenues and expenses as resources obtained from owners are used by management. Transactions between the company and its owners do not directly affect the income statement.