Dictionary / Non-Par-Value Capital Stock
What does Non-Par-Value Capital Stock mean in accounting?
Quick definition
Equity & capitalCapital stock having no specified par or nominal value. This term guides how bookkeepers record, classify, and explain related transactions in routine financial reporting.
Read more below
Examples
No par in the articles
You incorporate a timber-frame shop as an S-corp on March 11. The articles authorize 1,000 shares of capital stock with no specified par or nominal value, you issue yourself 200 of those shares, and you deposit $15,000 at the bank. The board then assigns a $5 stated value per share, so debit Checking $15,000, credit Capital Stock $1,000 (200 × $5), and credit additional paid-in capital $14,000. The $5 is a board assignment, not a printed par value; the articles still show no par. In QuickBooks Online, split the deposit that way, and do not credit the whole $15,000 to Capital Stock after the resolution.
Cash posted as if $1 par
You run a chimney shop as an S-corp whose articles list capital stock with no par or nominal value and no stated-value resolution on file. On November 4 your sister wires $18,000 for 300 new shares. Debit Checking $18,000 and credit Capital Stock $18,000; the whole cash-in belongs on that non-par stock line. If you post $300 to Capital Stock and $17,700 to additional paid-in capital as if each share had a $1 par value, you invent a par the charter never set. Open the articles before you split the deposit in Xero.
Why it matters
Non-par-value capital stock is capital stock with no specified par value or other nominal amount in the articles or on the certificates. You will not post this most months; it appears when you form a corporation, issue shares, or take a stockholder deposit, then the equity line sits on the balance sheet until the next issuance. If the board assigns a stated value, only that assigned amount belongs on the capital stock line and the excess is additional paid-in capital; invent a printed par the charter never set, or leave the whole deposit on the stock line after a stated-value resolution, and the equity split no longer matches the articles. Read the charter and any board minutes before you split owner cash, and do not treat a blank par line as a license to invent a dollar par.
Further reading
Compare this term with reference material from other accounting and finance websites.
Keep learning
Start with the bookkeeping basics, then compare software when you are ready to pick a tool.
Getting startedBookkeeping basics for small-business ownersWhat bookkeeping is, the records you need, double-entry in plain English, and a monthly rhythm that fits a 1–50 person shop.Updated October 4, 2026
RolesWhat does a bookkeeper do?A bookkeeper records bills, invoices, and bank activity so your books stay current. See the weekly work, the month-end close, and what they do not do.Updated August 18, 2026
Monthly closeMonthly bookkeeping: what to close each monthMonth-end is the job: reconcile banks and cards, age bills and invoices, check payroll, then read the reports. A close checklist for small-business owners.Updated August 18, 2026
Startup BankingThe 5 Best Banks for EU StartupsThe 5 best banks for EU startups, ranked: Wise Business, Revolut, Qonto, bunq, and Finom compared on fees, deposit protection, and honest tradeoffs.Updated August 9, 2026Frequently asked questions
What is Non-Par-Value Capital Stock in bookkeeping?
Capital stock having no specified par or nominal value.
When should I use Non-Par-Value Capital Stock?
Use Non-Par-Value Capital Stock when the transaction facts match its definition and you need the ledger and financial statements to reflect the correct account and period.
What is a common mistake with Non-Par-Value Capital Stock?
Non-Par-Value Capital Stock is used for non-par-value capital stock entries, while Negotiability covers a related but distinct bookkeeping purpose. Review both terms before posting unusual transactions. A common mistake is applying it by label only instead of checking the underlying transaction details.