Definition of surplus

1. earned surplus or retained earnings reflecting the accumulated net income less dividend distributions.
2. capital surplus, the stockholders' equity in a corporation in excess of par or stated value of capital stock.

1. equity of a corporation, including stock issued at a premium over its par value or stated value, representing the excess of assets over liabilities, including capital stock. The preferred term is capital surplus. In banking, there is little difference between equity capital and surplus, because amounts contributed by stockholders over the par value of their stock are counted as part of the capital account in computing capitaladequacy and the bank's net worth.
   The Comptroller of the Currency requires national banks to have surplus of 20% over the paid-in capital stock before obtaining a charter. Also, national banks must allocate at least 10% of the previous six month's earnings to the surplus account before paying shareholder dividends.
2. net profits of a corporation after payment of dividends. Also called earned surplus, undistributed profits, or retained earnings.

In general: any excess amount.
Finance: remainder of a fund appropriated for a particular purpose. In corporations, surplus denotes assets left after liabilities and debts, including capital stock, have been deducted. See also earned surplus.

connotes either capital surplus or earned surplus.