20250607110752-Retained_Profit

Retained Profit

From bib. source

This is the difference between the earnings and the ordinary dividends. It increases the equity or shareholders’ section of the balance sheet by the amount involved.

Basically. the retained profit is equal to the earnings minus the ordinary dividends. The retained profit increases the equity in the balance sheet by its amount (Kind 1999, 35).

Important

Let retained profit be $P_r$, earnings be $e$, and ordinary dividends be $d$:

$$P_r=e-d$$

math mathematics mathematical_operator mathematical_operators subtraction subtraction_operator subtraction_operators difference equality finance accounting equity shareholder_equity balance_sheet retained_profit earnings ordinary_dividend ordinary_dividends dividend dividends profit

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bibliography

• “The Profit and Loss Account in More Detail.” In Accounting and Finance for Managers, 25–37. The Fast Track MBA Series. Dover, NH: PriceWaterhouseCoopers, 1999.