THE LEDGER 17 



but this is not necessary. If Mr. Arnold gives $10 to a 

 beggar, it is a business transaction even though the beg- 

 gar does not give anything of value in exchange for the 

 money. 



Value. Anything that has worth, purchasing power, or 

 exchangeable utility is said to have value. Thus, prop- 

 erty, uses and services have value. Uses are best repre- 

 sented in bookkeeping by interest on money. Services are 

 best represented by wages or salaries earned. 



Property. Anything that a person owns is his property. 

 Legally, property is divided into two classes (1) real and 

 (2) personal. Real property consists of real estate, includ- 

 ing any attachments thereto, as buildings, fences, trees 

 and crops which grow up from year to year without re- 

 planting. 



Personal property includes all other possessions of man. 

 It is generally divided into two classes, (a) corporeal and 

 (b) incorporeal. The corporeal includes all movable, 

 tangible property, while the incorporeal is best represented 

 by a legal right to property, known as choses (things) in 

 action. Thus when Mr. Bell owes Mr. Arnold $500, 

 Mr. Arnold is said to possess personal property worth 

 $500. His property in this case is not tangible. It is 

 incorporeal. 



In bookkeeping, this type of incorporeal property is 

 listed under the name of the individual who owes it, rather 

 than under a general title of property or in- 

 corporeal property. Accounts Receivable is the gen- 

 eral title given to such incorporeal property in books of 

 account. 



Capital. Capital is the difference between the resources 

 and the liabilities of an individual. In a business enter- 

 prise capital is the difference between the resources and 

 liabilities to those not owning the business. In other words, 

 it is the property belonging to the owners of the business 



