In this article we will discuss about the accounts of electricity companies, explained with the help of a suitable illustration. 1. Depreciation: Every fixed asset must be depreciated; and for the purpose of depreciation, the life of each asset is to be taken as stated in the table given in the Seventh Schedule. As regards the depreciation method that can [...]
Public utility concerns in England were previously required to prepare their accounts under the Double Account System. The Double Account System is merely a way of presentation of final accounts. It should not be confused with the Double Entry System which is the basis of maintaining books of account. Up to the preparation of the trial balance, there is no [...]
In this article we will discuss about the Legal Provisions on Accounts of Electricity:- 1. Depreciation 2. Reasonable Return 3. Clear Profit 4. Disposal of Surplus 5. Tariffs and Dividends Control Reserve 6. Contingencies Reserve 7. Development Reserve 8. General Reserve. Contents: Depreciation Reasonable Return Clear Profit Disposal of Surplus Tariffs and Dividends Control Reserve Contingencies Reserve Development Reserve General [...]