I have created a private test net and an account in Ethereum Wallet by referring this link: https://souptacular.gitbooks.io/ethereum-tutorials-and-tips-by-hudson/content/private-chain.html
I have ethers in the etherbase account as well. I have deployed one smart contract and everything seems to work fine. The only concern that I have is how the ethers in the base account keep on increasing on their own?