The bookkeeping entries, save as to rent-producing properties, should credit "Options" with option payments as they are received; and if the number of such transactions Warrants it, a sub-ledger should be opened for individual accounts of option holders. The commission ledger (Form 12, Section 21) provides for agents' commissions in such cases.

In the event of an option being allowed to lapse, the amounts paid in should be credited direct to Profits account; and in the event of an option being exercised, the consideration therefor having been paid, the amount so paid is transferred to the credit of Real Estate, Contracts, or other appropriate account. In no case does any liability attach to the purchaser, but the vendor obligates himself to give title, or some form of guaranty for title, upon the conditions being fulfilled.