From the rent cash book each item is posted to the rent ledger. Several forms of rent ledger are shown in Forms 36 to 38 (SectionSection 42, 43). There are also many other special forms of this ledger which can be obtained from any good stationer.

Where rents are collected for clients, the ledger account of each house should show clearly the name of its owner. All rent accounts can then be treated in precisely the same manner, whether they belong to the concern or to a client. At the close of the month, a regular trial balance showing the monthly debits and credits to each house, is taken from the rent ledger, which book, if kept as above outlined, is self-balancing. The trial balance would be similar to the following:

18

State Street........................

$50.00

22

" "...............................................

$20.00

50.00

502

Main Street (Joe Doe)....................

15.00

40.00

45

King Street.........................................

14.00

80.00

80

Hospital Street (Richard Roe)................

150.00

Etc., etc..............................

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

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

General Account.............................

845.00

$2,453.00

$2,453.00

From this trial balance a summary may readily be prepared, classifying the debits and credits applying to each client and forming the basis of the monthly statement to be rendered to each. Supposing that all collections are credited on the general ledger as transferred to Rent Department, the journal entry would be of the following form:

Rent Department.........................

$1,133

To Joe Doe......................

$485

" Richard Roe......................

545

" Rent Commissions..............................

103

The account with each client should be carried on the general ledger, for it is a common thing for them to draw, sometimes in advance, a fixed or varying monthly sum; or it may be necessary to charge their accounts with sums paid for insurance, taxes, etc., which pass only through the general cash book.