Additional Capital
Investments made by owners beyond their initial contribution, increasing equity without changing ownership percentages in the business.
Additional Capital
Investments made by owners into a business beyond their initial contribution, increasing the equity without issuing additional shares of stock in a corporation.
For example, a partner in a law firm might contribute an additional $50,000 to help finance office expansion, increasing their capital account without changing their ownership percentage.
Additional capital provides businesses with funds for expansion, debt reduction, or working capital needs without incurring interest expenses or giving up ownership control. These investments demonstrate owner confidence in business prospects and strengthen the balance sheet by increasing equity.