Retained Earnings are a portion of the accumulated profits or the earnings of the company over a period of time, which have not been distributed to the shareholders and are kept for either re-investment in the business or paying off the liabilities and/or losses. Copy the link given below and paste it in new browser window to get more information on Retained Earnings:- http://www.transtutors.com/homework-help/finance/retained-earnings.aspx

2. Definition:
 Retained earnings are the accumulated
profits of the company over the time
after deducting dividend from the net
income .
 These are the shareholder’s ownership.
 Maintained to meet contingent losses,
re-investment in business etc.

3. Journal Entry:
Case 1: When company has profits
Retained Earnings Account…….. Dr.
To Profit and Loss Account……… Cr.
Case 2: When company has loss
Profit and Loss Account……… Dr.
To Retained Earnings Account…….
Cr.

5. Retained Earnings
Statement
+ Opening / Beginning Retained Earnings
± Net profit / Net loss in the current year
- Dividends paid during the year
Closing Retained Earnings

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7. Hey Friends,
This was just a summary on Retained Earnings. For
more detailed information on this topic, please type the
link given below or copy it from the description of this
PPT and open it in a new browser window.
http://www.transtutors.com/homework-
help/finance/retained-earnings.aspx