L 4A
LOWE. BINGHAM & MATTHEWS, HONG KONG
16 -
22
against profits of Food Section
Rice.
Monthly transfers have been passed since
September, 1950, debiting "Rice Storage Suspense Ac-
count" and crediting "Food Suspense Account" with what
would have been normal monthly storage charges made by
commercial owners. This inter-branch transfer of funds
as a notional storage charge is not reflected in the
Trading and Profit and Loss Account of Food Section -
Rice. We are informed that this notional monthly trans-
fer will, in due course, liquidate the balance on "Rice
Storage Suspense Account."
The above methods of financing the original
capital outlay and subsequent maintenance and operating
costs, together with the monthly transfer of funds be-
tween Suspense Accounts were, we understand, approved by
the Secretary of State for the Colonies in his savingram
403 of 21st April, 1950.
SURPLUS - $21.670.467.44
In our Modified Report dated 18th January,
1951, on the Statement of Accounts prepared by us for
the period 1st May, 1946, to 31st March, 1950, of the
Department of Supplies and Distribution (now named De-
partment of Commerce and Industry), we stated, "it is
more than probable that amendments will arise as and
when further information becomes available."
As the Surplus at 31st March, 1950, was trans-
ferred to Treasury pending approval of appropriation by the Secretary of State for the Colonies, (approval since
granted) it has been necessary to show adjustments in
respect of prior years in a separate section of the
Surplus Account in order to avoid distortion of this
year's operating figures.