Retained Earnings: Debit or Credit Balance? Is chart of accounts the same as a general ledger? To decrease the retained earnings account, it will be debited.retainedearningsdebitorcreditButthereareexceptions:sometimesthetopmanagementofacompanymaydecidetopaydividendsfromretainedearningsofpreviousyearsorevenborrowtopleaseitsshareholders.RetainedEarnings.IftheAssetsdemonstratewhatthecompanyowns,thentheLiabilitiesandStockholder’sequitytellthesourcestheseassets.Youremailaddresswillnotbepublished.IfyoumakeacreditentrytoanyaccountunderExpensesorAssets,theywilldecrease.RetainedEarnings:DebitorCreditBalance?Ischartofaccountsthesameasageneralledger?Todecreasetheretainedearningsaccount,itwillbedebited.Requiredfieldsaremarked*.Isretainedearningsadebitoracredit?Retainedearningsincreasewhenthereisaprofit,whichappearsasacredit.Stockholders'equityhastwoprimarycomponents:contributedcapital(capitalstock)andretainedearnings,bothofwhichhaveanormalcreditbalance.Accordingtogenerallyacceptedaccountingprincipals(GAAP),increasestotheretainedearningsaccountonthebalancesheetarereflectedwithacreditentry.Retainedearningsappearsinthestockholders'equitysectionofthebalancesheet.);reservecapital(reservefund,whichiscreatedfromnetprofitandsoon);retainedearnings(formduetotheefficientoperationoftheenterprise,remainatthedisposal).Retainedearningsappearsinthestockholders'equitysectionofthebalancesheet.Anaccountingbalancemeansthattheassetsareequaltoliabilities,plusstockholder’sequityanddebitsshouldequaltocredits.WhatIsRetainedEarning'sNormalBalance?Decreasestoreturnedearnings,asmightbefoundwithanetloss,areaccountedforwithadebitentryintotheaccountingjournal.GeneralJournalDebitCreditDateDecember31,2021RecordentryClearentryViewgeneraljournalJournalentryworksheetClosetheexpenseaccountsusingRetainedEarnings.Thedecisionshouldbebasedonopportunitycosts:ifthecompanycanprovideareturnnotlowerthantheopportunitycostsofshareholdersinthemarketwithequivalentrisk,thenitneedstoreinvestandviceversa.Asyouhavelearnedearli