Earned Surplus

Definition of Earned Surplus

That species of surplus which has been generated from profits as contrasted with paidin surplus. Term relates to net accumulation of profits; it is a part of surplus that represents net earnings, gains or profits, after deduction of all losses, but has not been distributed as dividends, or transferred to stated capital or capital surplus, or applied to other purposes permitted by law. Conine v. Leikam, Okl., 570 P.2d 1156, 1160.

That's the definition of Earned Surplus in Black's Law Dictionary 6th Edition. Courtesy of Cekhukum.com.

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