Skip to content
Sign inRegister

Ask the Tutor ACCA FR

transfer to retained earnings

Xxyzc3y ago
Why a transfer to retained earnings is an addition to retained earnings
P2-D2P2-D2Tutor3y ago#1
Because we are reducing the revaluation surplus, a debit entry to reduce the credit balance in equity and therefore the other side of the entry is the credit to retained earnings that is increasing the credit balance. Thanks.
Sign into reply to this topic.