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what is the retainned earnings account? why are you take
for the x?
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Answer / ca prem
Retained Earnings Account is opened to park the funds that
remain after distribution of dividends , the same is put
into use for either purchase of new machinery or is
invested , the interest earned on this invested has to be
ploughed back to Retained Earnings Account and cannot be
treated as Income in Normal course
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Answer / chandu
Retained earnings are profits after distributing the
dividends to equity share holders. The retained earnings are
reinvested in the business for business development or
diversification.
| Is This Answer Correct ? | 1 Yes | 1 No |
Retained earning is nothing but a accounting profit that
means previous year profit plus current year profit
| Is This Answer Correct ? | 0 Yes | 2 No |
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