WHAT IS THE DIFFERENCE BETWEEN NET PROFIT AND RETAINED EARNINGS?

 Hi there,

I have not worked in the accounting department ever before, so when I was asked to help the bookkeeper with his workload, I was apprehensive. It took me some time to adjust to the new environment, but I am good with numbers and calculations so did well. The best part is that I loved the work and learnt a lot over the past few months. The most recent learning has been the difference between net profit and retained earnings. I thought that they were same, but they are quite different. RE is calculated by deducted dividends from the net profit. To understand this in detail, do read the article shared below.

https://www.agibookkeeping.com.au/what-is-the-difference-between-net-profit-and-retained-earnings/




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