Question

under the double account system parliamentary expenses is shown in

Answer 1

Answer:

The balance of Receipts and Expenditure on Capital Account is carried down and shown in the respective side of the General Balance Sheet or, the total of two sides of this account are shown on both sides of the General Balance Sheet.

It is generally adopted by public utility concerns formed under special acts of parliament. As indicated earlier, under this system, the balance sheet is bifurcated in to two parts viz., (i) receipts and expenditure on capital a/c and (ii) general balance sheet.

Answer 2

Under the double account system parliamentary expenses is shown in the respective side of the general balance sheet.

• The drafting of final accounts in double entry system involves four steps. They are revenue account, net revenue account, capital account and general balance sheet.
• In revenue account, the expenses are collected and listed in respective debit side and incomes are noted to relate the normal profit and loss account.
• Net revenue account relates the ordinary profit and loss appropriation account.
• Total capital and the application of the same in various fixed assets is shown in capital account.
• General balance sheet is the second part of the balance sheet. It has current assets and current liabilities.
• The assets and liabilities are written in the right and left hand side respectively.

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