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) [...]
In this article we will discuss about the important features of double account system of accounting. 1. Generally, a public utility undertaking needs a large amount of capital which is invested in the acquisition of fixed assets. Therefore, fixed assets, fixed liabilities, current assets and current liabilities are to be separately dealt with. Fixed Assets and Fixed or Long-term Liabilities [...]
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 [...]