Double Account system

A system of presenting the financial statements of

public utility concerns like
Electricity companies
Gas distribution companies
Rail way companies
Water distribution companies etc
 Double Account system

This system is so called because
Balance sheet is split in to two parts
Receipts and payments on capital account and
General balance sheet
Income statement as
Revenue account and
Net revenue account
 Differences between single accounts
and Double accounts
Single Accounts Double Accounts
Only one balance sheets Balance sheet is presented two
parts capital and current accounts
P&L, P&L Appropriation a/c Revenue a/c and Net Revenue a/c
Non existing assets are not appear in Non existing assets may appear in BS
BS
Depreciation is shown by way of Depreciation is shown as
deduction depreciation fund in general BS
Interest is charged in P&L A/C Interest is shown as an appropriation
in net revenue account
Discount is written off Permanently retained as capital item
Share premium after utilisation
stands to disappear
Preliminary expenses written down
and disappear after fully written off
Accounts of Railway Companies and
Electricity Companies

Accounts of Railway Companies and
Electricity Companies







 Revenue account

Generation Sale of energy
Distribution For lighting
Public lamps Of power
Rent, rates and taxes For special contracts
Management expenses Public lighting
Law charges Rent of meters
Depreciation Rent
Special charges (bad debts) Transfer fees
 Net revenue a/c

Balance from last year Balance from last year
Interest on loan Balance from revenue
Contingency reserve a/c
Interest on debentures Interest from bank
Dividend

?
? Balance
 Capital a/c
expenditure Op addi Tot Receipts Op addi Tota

Preliminary exp
al

Equity shares
l

Land Preference shares

Building Debentures
Plant Loans
Mains Calls in advance
Transformer
Meters
Total exp xx xx xx Total recip xx xx xx

Bal carried to GBS ? Bal carried to GBS ?

xx xx
 General Balance sheet

Liabilities Amount Assets Amount
Capital a/c Capital a/c
Sundry creditors Stores in hand
Net revenue a/c Preliminary exp
Reserve fund Cash in hand
Depreciation fund Cash at bank
Spl. Items
Total Total


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