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14 December, 00:16

The net increase or decrease in Retained Earnings for a period is recorded by closing entries.

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  1. 14 December, 04:02
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    True

    Explanation:

    The net revenue or net loss would be expressed in the retained earnings account statement.

    The computation of the ending retained earning balance is shown below:

    The ending balance of retained earning = Opening balance of retained earnings + net income or net loss - cash dividend paid

    These are the closing entries which are shown below:

    Income summary A/c Dr

    To Retained earning

    (Being the difference is credited to retained earning)

    Retained earnings A/c Dr

    To Cash Dividend A/c

    (Being dividend account is closed)
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