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What are retained profits? - Commercial Studies

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Question

What are retained profits?

Answer in Brief

Solution

Retained profits refer to the profits that have not been distributed as dividends but have been kept for use in business. Profits are usually retained in the form of general reserves. A part of the profits is transferred to the reserves every year.

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Retained Earnings
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Chapter 10: Sources of Finance - EXERCISES [Page 171]

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Goyal Brothers Prakashan Commercial Studies [English] Class 10 ICSE
Chapter 10 Sources of Finance
EXERCISES | Q 8. i. | Page 171
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