The amount of detailed checking which these accounts require depends largely upon the excellence of the internal check in the office. The annual entry in the property ledger of the gross rents received from each piece of property, and the total amount expended for repairs thereon, affords a rough indication as to the efficiency of this department, in addition to simplifying a statement of the net returns.

In the case of rental agencies, the fact should be proved that all collections for clients are properly accounted for and that such clients are charged with all amounts spent on their behalf.