| # Balancing Profit and Loss Individual Accounts The Profit & Loss accounts are individually cleared against the Retained Earnings account. Source of Earnings Each Profit & Loss account is individually cleared against the related Source of Earnings account. At the same time, the Source of Earnings accounts are cleared against the Retained Earnings account. You can use this method to view the composition of the total profit for the year, for example, what percentage of the total profit is from operating profit, extraordinary profit, and so on. Total All Profit & Loss accounts are cleared directly against the balancing account that you select in the Company Parameters (tfgld0503m000) session and the total amount on the balancing account is posted to the Retained Earnings account. |