23
debits against the reserve thus made
again a paper entry only the cost of
replacements.
The
-
Colony takes net revenue of Railway
before debiting depreciation, and pays
for actual replacements out of a special
expenditure sub head of Railway Vote.
The Railway, accumulated revenue deficit
to 31.12.36 was $7,930,870 so that it
cannot be said that Colony holds any free
Railway funds;
though, as interest is
the
not charged on this deficit, Railway
sets up a paper credit for interest on the
balance of the depreciation reserve a/c
against the paper debit for interest on
special expenditure.
Colouint
ment
3. The Governer now proposes to back
Λ
the paper Reserve by a fund of liquid
assets, and to increase the fund to a
total adequate to cover the expired life
of all the wasting assets.
This is a
mos t