Retained Earnings

[Derek Atkins]

The Balance Sheet in 1.8 is a little confusing.  The version in SVN is 
better. Basically, the retained earnings computation is trying to mimic 
the "closing
the books" by computing the Income and Expense differences between the 
time the
balance sheet is run and the time the books would have been "closed" as Net
Profit, and the values at that time as the Retained Earnings.

In other words, it's computing what would happen if you zeroed out your Income
and Expense accounts at the start of the period.

-derek

Quoting Doctorcam <cam at ellisonet.ca>:

> This shows up as a calculated amount in the Balance Sheet report.
> Where does it come from?  I notice that the Retained Earnings figure
> for the last fiscal year is the sum of the RE and the Net Profit for
> the previous year, which was the first year of operation.
>
> My accountant is wondering, and I'm confused.
>
> Thanks
>
> Cam
>
>
> --
> Cam Ellison  Ph.D.  R.Psych. #01417
>
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-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
       warlord at MIT.EDU                        PGP key available