Retained profit

kittycatkittycat New MemberPosts: 12Registered
Hi am studying Intermediate with kaplan.

Am doing questions at back for final accounts for sole trader. Can any one please explain how you work out the retained profit, as the book does not seem to mention it.

Many thanks
:mad2:

Comments

  • Paul24Paul24 Experienced Mentor Posts: 578Registered
    Retained earnings at beginning of the year less dividends paid, add profit for the year.
  • garry_coombsgarry_coombs Well-Known Posts: 108Registered
    Sole traders don't have retained earnings, as they aren't companies.

    They would have proprietor accounts, which work differently because all the money is directly owned by the owner.

    Sole traders don't have dividends.

    It would just be any brought forward plus the capital introduced in the year, less the drawings add the profit for the year
  • kittycatkittycat New Member Posts: 12Registered
    Thanks for that. I thought was mad. Have been sat there for ages wondering why i could get to the roight answer but wothout the retained profit. Must be yet another mistake in the book. Ever grateful:001_smile::001_smile:
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