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The New Zealand Railways Magazine, Volume 1, Issue 5 (September 24, 1926)

[section]

The accounts of the New Zealand Railways for the year ended 31st March, 1926, as published in the Annual Railway Statement are of special interest in that they set out the results of the first year's working under the financial reorganisation operating from 1st April, 1925.

It is very gratifying to note that after paying interest charges amounting to £1,913,311, providing fully for depreciation and transferring £58,000 to the Betterment Fund there was a net surplus for the year of £21,023.

It is proposed in this article to outline the the Accounting system and to give some details showing the method under which the many hundreds of thousands of financial transactions which are concentrated in the final figures are collected in the Chief Accountant's office, Wellington.

The accounts which are framed on commercial lines may be classified into seven general groups as follows:—

  • (1) Capital Expenditure.

  • (2) Betterments Expenditure.

  • (3) Operating Expenditure.

  • (4) Indirect or Suspense Expenditure.

  • (5) Recoverable Expenditure.

  • (6) Reserve and Equalisation Funds.

  • (7) Balance Sheet Accounts (Assets and liabilities).

  • (8) Revenue.

In dealing first with expenditure it is necessary to state that it is comprised of:—(a) Salaries and wages. (b) Stores and materials. (c) miscellaneous charges. These items will later be followed from their origin to the final accounts.