ABSTRACT
The General Ledger accounts deal with whole classes of like nature; the Subordinate Ledger with each individual asset or liability, or with groups which may be treated as individuals. This chapter assumes that the accounts are to be so arranged as to give currently the amount of interest earned and accruing, the amount which has accrued up to any time, and the amount outstanding and overdue at any time. It hardly seems necessary to argue this point, were it not that many important investors pay no attention to interest until it matures, and some do not carry it into account until it is paid. The Profit and Loss account depends for its accuracy upon the interest earned, not upon the interest falling due, nor upon the interest collected, and the accruing of interest is a fact which should be recognized and recorded.
