Accurate estimation of relative carbon deposition (marine vs. terrestrial) is required for understanding the global carbon budget, particularly in the Arctic region, which holds disproportionate importance with respect to global carbon cycling. Although the sedimentary organic matter (SOM) concentration and its isotopic composition are important tools for such calculations, uncertainties loom over estimates provided by organic-geochemical bulk parameters. We report carbon and nitrogen concentrations and isotopes (δ13C and δ15N) of SOM at an Arctic fjord namely Kongsfjorden. We find that the bound inorganic nitrogen (ammonium attached to the clay minerals) forms a significant proportion of total nitrogen concentration (~77% in the inner fjord to ~24% in the outer part). On removing the bound nitrogen, the C/N ratio shows that the SOM in the inner fjord is made up of terrestrial carbon while the outer fjord shows mixed marine-terrestrial signal. We further show that the marine organic matter is unusually more depleted in 13C (~-24‰) than the terrestrial organic matter (~-22.5‰). This particular finding also helps explain high δ13C values of SOM as noted by earlier studies in central Arctic sediments despite a high terrestrial contribution.