This book is needed only where capital stock is not paid for immediately upon subscription. In it, an account is opened for each subscriber for stock, showing his name and address, the amount of his subscription, and the terms of payment. The subscriber's account is charged with the amount of his subscription, and credited with the payments thereon as they are made. When the subscription is completed the account is closed. Inasmuch as this is merely a sub-record, the entries for which are taken from the journal and the cash book, the loose-leaf ledger is convenient and unobjectionable. The subscription ledger corresponds to the English record known as the "call book," in which is recorded each call made for unpaid capital subscribed.

The debit entries to the subscription ledger are posted from the journal, where the entry is usually made in the following form:

Subscription Account ...................................

$........

To Capital Stock Account .........................

$........

For the following subscriptions to stock:

John Brown, 5 shares, $500, payable

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

James Smith, 10 shares, $1,000, payable

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

The credit entries to the subscription ledger are usually posted from the cash book as payments are made, although occasionally a journal entry is required when some consideration other than cash is received for capital stock or when subscriptions are cancelled.