=25. Results of Distribution.= Having posted the journal, turn again to the _Private Ledger_ and note what has taken place. It is found that the two items of labor posted have just balanced out the _Labor Account_, and every dollar of pay─roll has been accounted for somewhere, either into expense or into production. It it also found that all the debits in the shop─expense accounts have originated in _Expense Ledger No. 1_, and the credits have originated in the _Production Ledger_. The various subdivisions of general expense have been consolidated in one _Distribution Account_, which has also been disposed of through the _Production Ledger_. What once appeared as an expense cost has now been wiped out, absorbed by production and converted into an asset, just as Mr. Clinton E. Woods, previously quoted, states it should be. A glance at the trial balance reveals scarcely a trace of expense, the small undistributed balances only remaining. =26. Undistributed Balances.= Under any method of distributing expense on a _pro─rata_ basis, it is apparent there will be small balances left, representing either an over─distribution or an under─distribution, as already explained. These may be treated in either one of two ways. If the product manufactured has been practically completed during the year, and but little carried over into the next year to be finished, these balances can be charged off and become a part of the _Loss and Gain_ account for the year in which they were created, and the new year begun with a "clean score." If the product, however, consists of large contract work but partially finished when the year closes, the work on same continuing for some time into the new year, these balances may be also carried over to be worked out in succeeding monthly distributions as the work continues. When this latter method is chosen, of course it will be necessary that these balances be taken into consideration when preparing the _Balance Sheet_.