How To Find Retained Earnings If Not Given
There are two possible answers to this particular question: Answer 1: If Closing Retained Earnings Not Given On Balance Sheet As we know that Assets = Liabilities + Owner’s Equity according to Accounting Equation , so by subtracting the Liabilities from Assets, we get Owner’s Equity as shown below: (In case of Company) Equity = Assets - Liabilities If you know about, “ Statement of Changes In Equity ”, then you can easily calculate Closing Retained Earnings if not given on the Balance Sheet / Statement of Financial Position. We need to the fill the information and we get retained earnings and most of times we need to sub tract Common Stocks, Share Capital, Share Premium Net Income / Profits and adding back Dividends, Capital Reserves and Net Loss in order to get the value of Retained Earnings. Answer 2: If Beginning Retained Earnings Not Given After finding out Closing Retained E...