when companies repurchase shares and return capital to shareholders the shares bought back are listed at their repurchase price which reduces shareholders equity 
calculating contributed capitalcontributed capital is reported in the shareholder s equity section of the balance sheet and usually split into two different accounts common stock and additional paid in capital account in other words contributed capital includes the par value or nominal value of the stock found in the common stock account and the amount of money over and above the par value that shareholders were willing to pay for their shares the share premium found in the additional paid in capital account the common stock account is also known as share capital account and the additional paid in capital account is also known as the share premium account example of contributed capitalfor example a company issues 5 000 1 par value shares to investors the investors pay 10 a share so the company raises 50 000 in equity capital as a result the company records 5 000 to the common stock account and 45 000 to the paid in capital in excess of par both of these accounts added together equal the total amount stockholders were willing to pay for their shares in other words the contributed capital equals 50 000 