Mortgages payable are of two classes, namely:

1. Mortgages given by the concern (a) to secure a part of the price paid for property, and (b) as security for money borrowed by the concern. Inasmuch as the latter may require approval by the stockholders, or others, it is sometimes well to observe this subdivision.

2. Mortgages already standing on properties, the equities in which have been acquired by the concern through purchase or exchange.

The two classes are similar, and the method of entering them on the books has already been given.