UK Retain Profit


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Please a company want to pay off a debenture out of the retain profit for the past year.
Can they use the retain profit?
What is the eateries?

Thank You
 
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bklynboy

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You pay with cash to release the liability. Not sure how you intend to pay with retained earnings. The entry is Debit Debenture Liability and Credit Cash.
 
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Thank you
Please can retain profit be invested back into the business? if so what are the entries?
Thanks for assistance
 
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bklynboy

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Retained profit can be reinvested and usually is. You don't directly hit that account though as that is meant to tell you how much you have accumulated in profit or loss since operating the business. When you invest back in the business you offset cash against whatever you are investing in (assets, buildings, equipment, R&D, employees etc). Can you tell me exactly what you are doing as your question maybe is not be translated correctly?
 

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