What is the difference between retained earnings and retained profit?

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1233947

2026-07-16 05:30

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Retained profits are profits of that particular financial year (After taken into account of dividends payouts, transfer to reserves and etc) without adding profits from the previous year. When Retained profit of the current year is transferred to the balance sheet after adding previous year profits, it is called retained earnings.

(Retained profit + Retained earnings b/d = Retained earnings c/d).

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