Hi FI Experts,
Why do we need more than one retained earnings accounts, what is the precise use of two?
I know the retained earnings account is used to carry forward the balances during the year end to the balance sheet and there by making the p&L A/cs balances as zero.
I guess the second one is used for different valueations for example as depreciation accounts for different valuations will have different retained earnings accounts.
Kindly correct me if I am wrong and eloborate on the use having more than one retained earnings accounts.