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AcItem count



1 401 Operating revenues
2 402 Operating expenses
3 403 Uncollectible bills
4 404




7 411 8 412

Income from Operating Properties:

222 22


Total (items 7 and 8)..

10 413 Rent accrued from lease of electric plant-Cr.


Net rent deduction (credit balance in red)

Balance of income applicable to corporate


Total revenue deductions.

Operating income applicable to corporate and
leased properties

13 421 14 422

15 423

16 424 17 425

18 426 Miscellaneous non-operating revenues.

Rent for lease of other electric plant.
Amortization of limited term land rights.

Income from Non-operating Properties:
Miscellaneous rent revenues.

Interest on long term debt owned...
Miscellaneous interest revenues.
Dividend revenues

Income from special funds.

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20 427 Non-operating revenue deductions.

Total miscellaneous income...

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Total (items 13 to 18, inclusive)....

Gross corporate income (items 12 and 21)...

Deductions from Gross Corporate Income:

23 431 Interest on long term debt....

24 432

Miscellaneous interest deductions. 25 433 Amortization of debt discount and expense..


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Item count

26 434 Amortization of premium on debt-Cr...
27 435 Miscellaneous amortization chargeable to in-


28 436 Miscellaneous deductions from gross corporate income



31 441 32 442 33 443



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Total deductions from gross corporate in


Net income (loss in red)...

Disposition of Net Income:

Sinking fund appropriations.
Dividend appropriations of income..
Miscellaneous appropriations of net income..

Total appropriations of net income.....

Balance transferred to surplus. . . . . . . . . .

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General Instructions and Definitions

1. Income Accounts Defined.

The income accounts are those that show the sources and disposition of income during a given period. Any change in the items shown on a balance sheet at the end of such a period as compared with a balance sheet at the beginning of the period, which is not merely a transfer from one balance sheet account to another, that is to say, any transaction which affects the profit and loss balance, must be explained by the income accounts or by the profit and loss accounts. A summary statement of income accounts arranged in convenient form to show the accounting history of a given period is usually called collectively the "Income Account." Income accounts whose title and definition plainly indicate that they are summaries of other accounts are not required to be set up as special ledger accounts, though it may often be a matter of bookkeeping convenience to do so.

2. Form of Income Account.

The form in which the income account is stated is determined by considerations of convenience and clarity. The standard form adopted for the purpose of this classification is shown on pages 55 and 56. In this form of statement there are certain terms used to indicate divisions of the income account which require special definition, given in the following paragraphs.

3. Revenues.

The word revenues as used herein means all amounts of money which the accounting company receives or becomes lawfully entitled to recover for services rendered, for products sold, as profits. on merchandise sold, or as a return upon its property (or interest in property). Revenues are classified as operating revenues and non-operating revenues.

4. Operating Revenues.

Operating revenues are those derived from the sale of products and merchandise, from services rendered, from return on property used by the person or corporation in its own operations, and from interest on current funds.

5. Non-operating Revenues.

Non-operating revenues are those derived as a return upon the property of the accounting company in the hands of others or from its interest in property in the hands of others. They may be sub-classified as rents, interest, dividends, and miscellaneous.

6. Revenue Deductions.

Revenue deductions include expenses, taxes, and uncollectible bills.

7. Expenses.

Expenses are those outgoes (including losses due to the retirement of capital) necessary to the production and distribution of the commodities sold and the services rendered, and to the collection of the revenues. They are divided into operating expenses, and non-operating expenses.

8. Taxes.

Taxes are those annual or other payments exacted by the governments for the purpose of raising funds for public uses.

9. Uncollectible Bills.

When a corporation is engaged regularly in rendering to general consumers a service, or in supplying to such consumers a commodity, current accounts or claims against such consumers for such services rendered or commodity supplied which are incapable of collection by the exercise of reasonable diligence are included under the name Uncollectible Bills.

10. Income.

Income is what is left after subtracting revenue deductions from revenue. Income from operating properties is income derived from the operation, or as a compensation for the use, of properties devoted to the undertakings for which the accounting company is organized. Income from non-operating properties is income derived from properties not devoted to the undertakings for which the accounting company is organized; also from properties not belonging to the accounting company, but in which it has an interest through ownership of stocks, bonds, or otherwise. Operating income applicable to corporate and leased properties is that income arising from any class of operations which is available to pay a return in one form or another upon capital employed in that class of operations. Income applicable to corporate property is that income which is available to pay a return in one form or another on capital owned by the accounting company. It is the operating income applicable to corporate and leased properties less rentals for the use of capital not owned. Gross income is income from all sources whatsoever. It might also be called total net revenue. Gross corporate income is that income applicable to corporate properties, that is, gross income less rentals for capital not owned. Net income is that amount left after all contractual or compulsory deductions have been made from gross income, except such sinking fund accruals as are required to be temporarily reserved.

11. Rents.

Rents are payments for the use of property employed in the business, but not owned by the accounting company. The standard form of income statement established by this system of accounts provides, therefore, for deducting from gross income rentals paid for the use of property not owned, in order that the income available for a return upon that part of the capital invested in the enterprise by the accounting company may clearly appear. Minor rents, however, such as rents for land, buildings and comparatively small portions of plant and equipment, not constituting a distinct operating unit, used for departmental purposes are more suitably, for administrative purposes, charged directly to one of the divisions of the operating expense schedules and suitable treatment of such expenditures is provided for in the operating expense accounts.

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12. Delayed Income Items.

Delayed items are those representing transactions which occurred prior to the period covered by the income account, but which were not recorded currently. Such items may be charged or credited to the appropriate income account for the fiscal period in which the transactions are actually recorded. If, however, the amount of such items is relatively so large that its inclusion in the income account for a single year would result in a seriously abnormal income statement, and no provision has been made through accruals to reserves or suspense accounts for anticipating such transactions, the accounting company may distribute the amount, or any part thereof, to Profit and Loss. In annual reports to the Commission reporting companies may be required to analyze all such debits and credits through Profit and Loss accounts.

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