These accounts afford another example of the advisability of keeping two ledger accounts for items not infrequently kept in one account. "Interest Earned" is credited with the interest charged to the general contracts, and with sundry interest which may be collected but which is not chargeable to "Overdue Mortgage Interest Receivable."

The "Interest Paid" covers all interest paid by the concern on loans, contracts payable, etc., with the exception of interest on mortgages payable. By keeping two separate accounts, the trial balance will always show how this important feature of the business is running.