370 – Retained Earnings

Net Worth

Synopsis

Account 370

Debits

Credits

  1. The loss for the accounting year, as shown in Profit or Loss – Current (Account 399) at the close of the year.

  2. Any dividends declared and recorded in Dividends (Account 375) at the close of the year.

  1. The net income for the accounting year (after income tax) as shown in Profit or Loss – Current (Account 399) at the close of the year.

 

 

Remarks:

This account should be used only by dealers operating as a corporation.

 

The balance in this account represents the amount of net earnings (after income taxes and dividend distributions) accumulated in prior years and retained in the business.

 

This account should remain constant throughout the retailer's accounting year.

Note: