Newly acquired real estate is brought on the books through the cash book and the journal. The cash book entries represent merely cash paid for, or on account of, any purchase. Such amounts are debited to Real Estate in the general ledger, and also to the specific account in the property ledger.

A full report of each purchase should be made, using a blank for the purpose, similar to that shown in Form 17 (Section 25). The property is then entered on the property index, and the property sub-ledger sheet is filled in and inserted in its proper place. If a portion of the purchase money is represented by a mortgage given or assumed by the purchaser, this part of the transaction will appear in the journal in substantially the following form:

Real Estate..................................................................

$5,000

To Mortgage Payable.....................

$5,000

For mortgage No......on property No......

name..............................................................

given or assumed by the company and held by.......................................

This amount is posted in the general ledger to the accounts shown, also in the property ledger, and in the mortgages payable sub-ledger.