74      REPORT OF THE COMMISSIONER OF INSURANCE.


miums received on . risks accepted should be included in the
gross premium account.
6. Commission Account-showing commissions paid, on the
debit side, and reinsurance commissions received on risks ceded,
on the credit side.
7. Expense Account-showing all other expenses, itemized,
such as advisory committee expenses, taxes, and legal expenses,
on the debit side, and refunds and other credits, on the credit
side.
8. Investment Account-showing the book value of all in-
vestments and their appreciation in book value, on the debit side,
and the conversion of investments into cash and the depreciation
in book value, on the credit side. NOTE.-Each form of in-
vestment should be clearly indicated in the explanatory column.
9. Subscribers' Account-showing the premiums written and
dividends applied to pay premiums., on the debit side, and all
payments of premiums and return premiums on account, on
the credit side.
10. Dividend Account-showing payments of dividends and
their equivalents to subscribers, on the debit side, and thle
amount declared to subscribers, on the credit side.
11. Emergency Fund Deposit Account-showing all deposits
received from subscribers, on the credit side, and repayments
of deposits in liquidation of -accounts of subscribers, on the
debit side.
12. Attorneys' Account-showing the gross commissions, on.
risks written, on the credit side, and payments of commissions,
on the debit side.
A simple form of trial balance of the face of the controlling
ledger, which ought to be made cumulative, should be drawiii
off each month. If the trial balance contain the ledger assets
at the beginning of the year on the credit side, then the an-
nual statement can be drawn from the trial balances with very
little difficulty.
The items of accrued interest, unpaid and unadjusted losses,
and the unearned premium    should be treated as non-ledger
items and placed in subsidiary books, and tthe results carried
directly into the annual statement blank. If this method is
pursued, we believe that the different exchanges will not find
the making up of the annual statement a difficult, or irksome