Title | : | How to Define Retained Earnings Account | General Ledger | Class - 13 |
Lasting | : | 3.36 |
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A company generally does not distribute all its earnings amongs the owners or shareholders as divident, brA portion of the net profit may be retained in the business for use in the fururebrThis is know as retained earningsbrIt is a permenent source of funds availabe to an organisation when business is earning profit, brIt will not come any aditional charges (explicit cost) like interest, DividendbrbrRetained Earnings Account is used to carry forward the balance from one fiscal year to the next fiscal year Comment from : Mohammed iqbal Ariv Vlogs |
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