These accounts, and especially Commissions Paid, need careful examination. Commissions paid' usually arise from sales of the concern's property by outside agents, and the accounts should be so kept as to show clearly to whom each item is paid and the book number of the property concerned. It is convenient to carry this information into the ledger entry in some such form as the following:

Jan. 13 Cash, J. Abbott, in full account Contract No. 475... $75

This makes it possible to ascertain quickly at any time the total amount paid to any one person, or on any particular property or section. The payment of commissions on time sales, where the commissions are paid as collections proceed, can best be recorded in a commission ledger similar to Form 12, Section 21.

Commissions received arise chiefly from three sources:

1. Sale by the concern of property owned by others.

2. Commissions on loans arranged.

3. Commissions on rents collected.

An examination of the "commission business register" will quickly show if all earned commissions of Classes 1 and 2 are accounted for, while an examination of the rent records will afford a check on items in Class 3.