Dear
Please explain what is "retained earnings" . i am using quick books pro 2002, and i am new in this software and don't have much experience.I would like to know what is retained earnings.Please answer
Thanking you
sincerely

sunil.c

Retained earning is a balance sheet account and is presented in the equity section.
Retained earnings is an account that accumulates or the revenues and expenses from the day of establishment of the company.
Assume than a company was established in January 2007 and during the year 2007 net income for the company was 100,000 USD. At the end of the accounting period the net income will be closed to retained earnings (Debit net income and credit retained earnings) you should debit all revenue accounts and credit all expense accounts and close them to retained earnings.

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Simply put, retained earnings is the profit at the end of a year, where all expenses are subtracted from revenue. Retained earnings is exactly what it is labelled: earnings that are retained in the business.