In cases where mortgages are taken in part payment, the apparent gain should be carried to the Gain on Sales account (SectionSection 79-82). The handling of this account is treated more fully in Chapter XX (Earned Profits And Book Profits. Section 143. Book Profits).

The entries made on the cash book should credit Real Estate with the amount of cash received, and the journal entry is as follows:

Mortgages Receivable ...............................

$......

To Real Estate ..................................

$......

" Gain on Sales .................................