This is one of the various trust accounts so often found on the books of real estate concerns. In this particular case the concern had acquired a large number of properties, assuming the mortgages outstanding against them - many of which were overdue. Mr. Robinson entered into an agreement with the concern that, in order to facilitate the financing of the concern, he would buy certain of these mortgages at their face value with interest to the date of his purchase, and would treat the total of the sum so spent as one account, on which he would expect 6% interest, payable half-yearly. All these mortgages had been entered in the mortgages payable ledger as having been assumed by the concern, and a notation was made on the account for each mortgage bought by Mr. Robinson of the fact that it was assigned to him, a journal entry being made as follows:

Mortgages Payable ..............................

$......

Mortgage Interest Payable ...................

................

To J. Robinson, Trustee .........................

$......

These remarks are, of course, applicable only to this particular form of trusteeship. Another common form is where a trustee advances a certain amount of money, which is credited to him and which is to be repaid out of the proceeds of the sale of certain lands. In such cases he should be credited with the amounts advanced, and it is usually well to open two accounts somewhat similar to Nos. 91 and 92, in one of which the trustee receives credit for the whole amount, and in the other he is credited with the amounts as they become payable to him and is charged with the cash payments made on account thereof, the balance from this latter account being transferred periodically to the first account.