What are accumulated profits and losses?
Dear Student,
Accumulated profits are the profit that remains with an organisation after the deduction of dividend expenses. Accumulated profits are also called retained earnings and this profit can either be saved or reinvested within the business. It's a part of the shareholder's fund and shown in reserve and surplus in the liability side of the balance sheet.
Accumulated losses are the negative balance which is shown as debit balance of profit and loss under reserve and surplus under shareholders fund in liability side of balance sheet. Accumulated losses are written off over the period of time.
Regards,
Accumulated profits are the profit that remains with an organisation after the deduction of dividend expenses. Accumulated profits are also called retained earnings and this profit can either be saved or reinvested within the business. It's a part of the shareholder's fund and shown in reserve and surplus in the liability side of the balance sheet.
Accumulated losses are the negative balance which is shown as debit balance of profit and loss under reserve and surplus under shareholders fund in liability side of balance sheet. Accumulated losses are written off over the period of time.
Regards,