Sec. 1] CAPITAL SUMMATION 91 
The two methods may be illustrated by the balance 
sheets of three persons, say X,Y, and Z: — 
Person X 
Assets Liabilities 
Z’s mote . . . . . $30,0004 Mortgage heldby Y . $50,0000 
Residence . . . . 70,000 (Capital balance . . . 70,000) 
RRBR.shares. . . . 20000 
$120,000 $120,000 
Person Y 
Assets Liabilities 
X'smortgage *.’ .. $50,0008 DebttoZ . . . .'. $40,000¢ 
Personal effects . . 20,000 (Capital balance . . . 40,000) 
RR.shaves. -. ..... 10,000 
$80,000 $80,000 
Person Z 
Assets Liabilities 
Ysdebt . .. . 340000 DebttoX +0 Lo. $ 30,0002 
Farm . . . . ..« 80000 . (Capital balance. .. . 80,000) 
R.R.bonds. . .. . .. 20000 
$110,000 $110,000 
The items which appear twice, once as a liability of one 
man and again as an asset of another, are indicated by the 
same letter. Thus, “A” in X’s assets is matched by the 
equal and opposite item “a” in Z’s liabilities. The method 
of couples thus consists simply in omitting these pairs of 
items and entering those which remain. These, in the pres- 
ent case, are all assets. 
The results of summing up the capital accounts by the 
two methods are shown in the following tables: — 
Method of Balances Method of Couples 
Xs capital « + + . 370,000 Residence Jin Gd 870,000 
Y’s capital . . . ., 40,000 Personal effects. . . 20,000 
Zs capital. .'., ,.’80,000 Farm .. . ... - 50,000 
BR. shares’. . . . “30,000 
BER.bonds: . .. .: 20000 
$190,000 $190,000