Skip to Content
0
Former Member
Oct 29, 2009 at 03:58 PM

Why do we need more than one retained earnings accounts & what is the use?

379 Views

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.

with regards

Ramesh Y