Can someone pour in your suggestion...

Chanaat
Chanaat Registered Posts: 51 Regular contributor ⭐
Hello All,

I have a doubt. Could someone claify my doubt. The scenario is as below.

A limited company incurred a loss in the previous financial year(2020) 80 pounds and has a retained earning(profit made in 2019) of 400 pounds as per Balance sheet.

Does this mean, in the start of previous financial year the bank had an opening balance of 400 pounds(profit made in 2019) . Is this right, if not how the retained earning would be accounted and what would be the bank opening balance.


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