This account is described in Section 136 et seq., and refers to cases where interest is included in the principal of "Mortgages Receivable" and "Contracts." The method of determining the amount which has been really earned is similar to that applied to the Gain on Sales account (see Chapter XX (Earned Profits And Book Profits. Section 143. Book Profits)). In the case of the account appearing on the trial balance, it was found that $1,400.08 had been earned, and this amount is carried into the Profit and Loss account, the remainder forming one item of the profits in reserve.