In the case of subdivision accounts, whenever a balance sheet is drawn up, there should invariably be prepared a detailed list showing lot and block numbers, or a corresponding description, of the lots owned and unsold in each subdivision.

The number of these unsold lots, multiplied by the cost per lot, should equal the amount appearing in the Purchase account, when each subdivision is carried by itself in the general ledger, or the amount in the real estate ledger showing the cost of the property on hand.

In none of the accounts is error more likely to occur than here, and, if possible, the auditor should keep the lists of subdivision properties in his own possession with his working sheets.