View Retained Earnings T Account Pictures. The retained earnings (also known as plowback) of a corporation is the accumulated net income of the corporation that is retained by the corporation at a particular point of time, such as at the end of the reporting period. These statements are key to both financial modeling and accounting under the shareholder's equity section at the end of each accounting period.
Shown below in T-account format are the changes affecting the retained earnings of Forge ... from img.homeworklib.com Since the retained earnings account is an equity account, it has a credit balance. The word retained captures the fact that, because those earnings were not paid out to shareholders as dividends, they were instead. Retained earnings account is used to carry forward the balance from one fiscal year to the next fiscal year.
The term refers to the historical profits earned by the company, minus any dividends it paid in the past.
Retained earning represent the balance in your free reserves like profit and loss account, general reserve, etc. Select retained earnings account button. These are the retained earnings that have carried over from the previous accounting. The retained earnings account carries the undistributed profits of your business.
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