Here is a compilation of top four accounting problems on double account system with its relevant solutions. Problem 1: The following balances are extracted from the books of M/s. Flashlight Electric Company Ltd: (i) Fixed assets: Expenditure up to 1.1.2006: (a) Land and Buildings Rs 10,00,000 ; (b) Machinery Rs 15, 00,000. (ii) Additions during the year - Machinery Rs [...]
In this article we will discuss about the advantages and disadvantages of double account system of accounting. Advantages of Double Account System: 1. The Capital Account prepared under double account system is similar to a Cash Account. This account shows how much capital has been raised from the public and what portion of it has been spent on permanent assets. [...]
Final Accounts prepared under Double Account System consist of:- 1. Capital Account, i.e. Receipts and Expenditure on Capital A/c 2. General Balance Sheet 3. Revenue Account 4. Net Revenue Account. The Balance Sheet, in case of Double Account System, is split into two parts: (1) Capital Account, i.e., Receipts and Expenditure on Capital Account and (2) General Balance Sheet. (1) [...]