ABSTRACT
Richard Brown suggested that the Revenue Account (income statement) should not be a transcript of the relevant ledger account; he prescribed different forms of Revenue Accounts for different types of business; and he suggested the use of percentaged data in both the Revenue Account and Balance Sheet. A revenue account and balance-sheet are the only general divisions in which the normal accounts of an ordinary business concern are capable of being scientifically stated. The accounts attached to the Regulation of Railways Act, 1868, are very elaborate, comprising separate statements of capital raised and capital expended. The forms prescribed by the Board of Trade under the Electric Lighting Acts are somewhat similar to the forms under the Gas Works Clauses Act, and include a revenue account and a net revenue account. Under the heading of liabilities to the shareholders the paid-up capital comes first, then any reserve accounts, and lastly the balance of revenue account.
