Retained earnings account

[Mike or Penny Novack]

John Wilson wrote:

>Hi,
>My accountant would like me to add a retained earnings account to our
>set of business books.
>Can't find anything in the excellent concepts guide.
>Any suggestions how I proceed given that my year end (January 31st) is
>approaching and it would be a good time to add the account?
>Keep up the good work,
>John
>
>  
>
It should be a child of equity.

Just changes how you do a "close the books" (manually). Imagine a giant 
split transaction, split on both sides, closing out all the income and 
expense accounts for the year and this account (retained earnings) being 
debited or credited for the net loss or gain for the year (and that's 
what would go in the description field)

Michael