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S
susiet
Level 2
May 4, 2022
Question

does the additional paid in capital must remain on balance sheet similar to capital stock?

  • May 4, 2022
  • 1 reply
  • 5 views

i need to reduce the equity , is it ok to lower the additional paid in capital? or is it not ok because is acts same as capital stock?

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1 reply

sjrcpa
sjrcpa
Level 15
May 4, 2022

Unless there has been a stock redemption/purchase of Treasury stock, the capital stock and additional paid in capital accounts remain the same.

Why do you "need to reduce the equity" ?

The more I know the more I don’t know.
    S
    susietAuthor
    Level 2
    May 4, 2022

    they took too much money. the liability/equity is lower than the asset and i need to balance between the asset and liability/equity

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