Corporate Accounting

15

Double Account System

LEARNING OBJECTIVES

After studying this chapter you should be able to understand:

1. The meaning of double account system.

2. The salient features of double account system.

3. The differences between single account system and double account system.

4. The advantages and limitations of double account system.

5. The usage of double account system in public utility concerns such as water, gas, electricity.

6. The meaning and accounting treatment of: (i) Replacement of assets (ii) Tariffs and dividend control reserve (iii) Clear profits (iv) Reasonable returns and (v) Capital base.

7. The preparation of final accounts under double account system: (i) Revenue A/c (ii) Net revenue A/c (iii) Receipt and expenditure on capital A/c and (iv) ...