The difference between (ending capital) and (retained earnings)
By Arditaliu
@Arditaliu (1)
Serbia And Montenegro
2 responses
@sirensanssmile (3764)
• Netherlands
23 Oct 06
Retained Earnings is when profits are retained by the business for reinvestment and are not paid out as dividends to shareholders.
Ending capital is from the last financial statement (Capital Statement) that reports financial changes; increases, decreases in a designated amount of time. It uses the net income or loss from the income statement in addition to the business' investments and withdrawals to determine the ending balance.
The retained earnings: profits that are reinvested.
Ending Capital: The combination of income, loss, withdrawls and investments.
Hope this helped. I am not so good as explaining things.