53932/38
Draft.
Gapelbeam 1938
Mr. Walker 5/8
NOTE
1..
ispare
the Quis despatct.
year's in para.
is very misleading.
Though
called "depreciation" reserve, the
6-8 present provision is really a renewal
Mr. Sent or Cowell 8
Is reserve
(calculated in a special way to avoid
large growth of balance) operating to
flatten out the cost of replacements
charged against railway revenues.
copyto CA 2
e.g. 1936
Depreciation charge (2%)
$58,457
less
Spa
New boiler (paid for out
expdre sub head 41
Head 26)
$30,970
other major
replacements
1,113
32,083
Net Credit to Reserve a/c
$26,374
Under this arrangement there
will not be 60 years at 1%.
2. The present method of providing for
Vie
renewals of rolling stock by Hak Railway
and Colony is as follows:
The Railway sets aside as a purely
of the founo's day.
paper credit the % shown in para. 2 and
debits