Electric Light Accounts And Thier Significance

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Where property is sub- stantially continuous and cannot be satis- factorily individualized, it should be kept in efficient operating condition through repair, and the renewals and replacements of parts thereof should be considered repairs.
In the case of buildings, towers, bridges trestles and other separate structures capable of being readily individualized, charges to this account should be sufficient to provide in the reserve account by the time such structures go out of service an amount eq
...ual to the original money cost thereof, less salvage.
Note: The reasons for the establish- ment of this reserve account are discussed in a special chapter, entitled " Renewal and Contingency Reserve" appearing in a later part of this book.
44 Rentals: Amounts paid for the rental of real estate used in the operating processes or for general use. If the real estate is used for purposes represented by a clearing account, the rental should be charged to the clearing account; if for construction, the rental should be charged to the plant investment account interested.


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