It is a common occurrence for a real estate concern to find itself the owner, by sale or exchange, or more often by

• foreclosure proceedings, of certain properties whose values can be maintained only by operation. In a general way, such properties may be divided into two classes, viz.: (1) manufacturing or mining, (2) agricultural. The distinction here made is perhaps an artificial one, for the difference in treatment depends less upon the nature of the business than upon the amount of detail involved.

In operating any property of the first class, be it a factory, mill, coal mine, brick-yard, or other enterprise involving numerous expenditures and detailed accounts, a separate set of books should be opened, such as would be required were the business owned by strangers.

The accounts of the real estate concern should show in one account the principal invested, and in the other account the cash advanced to or received from the business. At the close of each fiscal period the books of the business should be closed in a proper manner, inventories taken, balance sheet and accompanying statements prepared, and adjustments made to the Principal account if there have been changes in value. The final profit should be carried into the general Profit and Loss account. The point to be emphasized is that in all such cases the general books of the real estate concern should be kept free from all details of operation.