Retained Earnings

[Doctorcam]

* David Harrison (davidharrisoncga at gmail.com) wrote the following:
> On 22/11/05, Doctorcam <cam at ellisonet.ca> wrote:
> > 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.
> 
> The short answer is retained earnings is the accumulated earnings of
> the company since it's inception. 

Thank you, but that wasn't the question.  Both my accountant and I
understand retained earnings.  What we wanted to know, and Derek was
good enough to supply the answer, was where Gnucash's built-in Balance
Sheet gets the numbers from and what it actually does with them.  With
no built-in facility for year-end closing, we have created a Retained
Earnings child account, so the built-in one is merely a source of
annoyance.

Anyway, thank you to Derek for his clarification.

Cheers

Cam

-- 
Cam Ellison  Ph.D.  R.Psych. #01417

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