The excess of the total net worth or stockholders’ equity over the total of par or stated value of the capital stock and the amount of proprietorship reserves. At least part of this excess usually results from earnings retained in the business. This part frequenly is labeled earned surplus or profit & loss surplus to indicate its source. That part of surplus arising from other sources (e.g., write-ups of fixed asset values, write-downs of the par or stated value of capital stock issues, or sale of stock at a premium) frequently is labeled capital surplus.