This is a sub-ledger somewhat similar to that just described, but containing the particulars of all mortgages (entered in numerical order) which are payable by the concern.

A special form of ruling is required in order to show clearly the following facts:

Serial number of mortgage; name of the mortgagee or his assignee; description of the property, with serial property number; amount of mortgage; date of mortgage; date due; value of security; rate of interest; dates when interest falls due; insurance called for by the mortgage; particulars of the recordation of the mortgage. (See Form 9.)

Provision must also be made for keeping separately the Principal account and the Interest account, as in Form 8.

Where mortgages are made by the concern, all this information can be obtained direct from the original papers before they are delivered to the mortgagee. It is frequently the case, however, that mortgages payable are assumed by the concern as a part of the purchase price for property acquired, and in such cases abstracts of title must be relied upon for this information, which is to be checked against the statements of the mortgagors. (See SectionSection 52, 53.)

In the mortgages payable ledger the Principal accounts are credited with the amounts of the respective mortgages and are debited with payments made on account of the principal. The total of the balances must agree with the balance of the Mortgages Payable account in the general ledger.

Form 9. Mortgages Payable Ledger.

It will usually be found that entries to the Interest accounts of mortgages payable relate solely to interest, and do not include such a variety of entries as appear in the corresponding accounts in the mortgages receivable ledger. This being so, the total balances of the Interest accounts will agree with the balance of the Overdue Mortgage Interest Payable account in the general ledger.

Form 10. Ordinary Ledger Ruling Adapted to Mortgages Payable Ledger.

In the event that it is not desired to have so complete a record as Form 9 provides, a substitute may be arranged in any ledger-ruled book as indicated on Form 10; but if there is a great number of these mortgages, the more comprehensive form should be adopted. In passing, it may be well to mention that unusual liabilities are often incurred in connection with mortgages payable, and that the execution or assumption of all such instruments should be authorized by the board of directors or other proper authority, the entries of which in the minutes may be compared with the entries in the ledger. The general subject of mortgages payable is discussed further in Section 52 et seq.