transfer to retained earnings

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December 14, 2022 at 8:40 am #674516
xyzc
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Why a transfer to retained earnings is an addition to retained earnings
December 30, 2022 at 9:15 am #675214
P2-D2
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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.

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