Is there having difference with Retained Earnings, Accumulated Retained Earnings and Corporate Disbursement?

Yes, there is a difference between retained earnings and corporate disbursement. If you read out following definitions of each of them then you will clearly understand about their distinction. Here I am trying to show you the differences which as under.

Retained earnings: Retained earnings mean we know the sum of profits of a company after payment of dividends to it share holders. Retained earning also called in may synonyms such as retained capital, accumulated earnings, accumulated profit, undistributed income, earned surplus, retained profit etc. Retained earnings may appear on the PL (Profit or loss account) or income statement or in the balance sheet under shareholders equity. It is treated as accumulated retained profit in the balance sheet. Basically retained earnings are a dividends amount which is undistributed among shareholders. The formula of retained earnings (RE) is = Beginning RE + Net Income – Dividends. In most of the cases company decided not to pay this dividend because of investment in a profitable projects in which company can create more growth or profits.

Accumulated Retained Earnings: When a company keeps it’s earning amount without disbursement to its shareholders those earnings are called retained earnings. That retained earnings when accumulated from an accounting period or fiscal year to another or next accounting period or fiscal year that is called accumulated retained earnings.

Corporate Disbursement: Sometimes we may call corporate disbursement as “cash outlay or cash outflow” or “monetary outflow” etc. Simply, corporate disbursement indicates, the act of paying out or disbursing in the discharge of expenses or debts money. Actually corporate disbursement comes when a company pays out its business debts money or expenses to its accounts payable or parties for settlement. For example, vendors payables, payment of salaries, payment to landlords, dividend payment, amounts pay to a lawyer, utilities bills etc. In case of purchase of assets (long term) usages like in the production equipment or property etc.

  

Above discussions is noticeably tells us where differences are there. So, now let us we apply these knowledge in our business areas where applicable.

What are the distinction between Income, Revenue and Gain?

Every businessman small, medium or large types those who are self employed or serving in Accounting and financial or non financial background individuals clearly have to understand these terms Income, Revenue and Gain chronologically. That’ why I have taken a decision to explain these 3 (three) which as follows:

Firstly let us know about Income, What is income means? 

Income: Net results from revenues less expenses incurred from previous period. Income commonly also known as earnings or profit. Income is an economic benefit (increases in assets like cash or receivables and decreases in liabilities such as loans, payable etc but it increase owners equity) for a proprietor of a business which arises during a past accounting or fiscal period. For example, some peoples called rent revenues as income. And an income from operations in sales less CGS (the cost of goods sold) minus operating expenses. In general sense, professional accountants treat income as “net of revenues and expenses”.   

Secondly, I would like to tell you about what is revenue?   

Revenue: The gross sales or cash receipts from its client’s for the sales of goods or services (merchandise sales) by a businessman are called revenues. Also alternatively revenue means turnover from sales or fees earned during an accounting period. In the IS (Income statement) revenues position is in first line. Revenue is the gross increase in receivables, cash or any other assets. For examples, dividend received from an investment, interest received by banks or financial institutions, property developer companies lease income etc. 

Third but finally I am going to conclude the question about gain, 

Gain: Generally gain means the difference between starting amount and ending amount. Say, gain on sales of companies assets (which is not an inventory of the concerned business) such as sales of an old delivery truck. Gain is the amount which received that is in surplus of the asset’s carrying amount (book value). For instances, If that delivery truck was sold out for an amount of BDT.20, 000, and it’s carrying cost was BDT. 2,000, the accountant will treat balance amount of money BDT.18, 000 as gain on sales of old delivery truck.

 

The above discussion is all about distinctions between income, revenue and gain.