1, and $350 Nov. 21. At the end of the year the gain is $7583.20, without taking into account the salary to be paid to A and the partners' interest. What is the balance of each partner's account at closing? A and B propose to buy C's interest in the business at closing, each to pay therefor a sum proportional to the interest which he now has in the profits. How much must each pay, and what will be each man's fractional interest in the profits of the new business?

5. Smith & Jones, builders, contract to put up a house for Brown, and furnish material for same, for $8750. When the job is completed the following conditions exist: Smith has paid wages amounting to $1672.50 and received on the contract $1160; Jones has paid for material $2543.75 and drawn on Brown for $2960. They have not paid the following bills help, $1232.80; material, $2767.20. They divide gains and losses equally. Find the balance due on contract, the net gain, and the balance due each.

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6. J and K lease a hotel for $10000, for 5 yrs., J paying , K. They share gains and losses equally. The business for 2 yrs. shows: 1st year, receipts, $7862.09, expenses, $4381.25; 2d year, receipts, $9645, expenses, $5118.44. J. paid from private funds $795.80 of 1st year's and of 2d year's expense; he drew $1275 1st year. K paid of 1st year's and $1000 of 2d year's expense; he drew $2500 2d year. They then sell their lease for $8000, taking $6000 cash and a note for the balance, which K takes on account at 1% discount. Close the books for each year, regarding lease as worth its cost 1st year. Show the balance due each at the end of 2d year, the lessees not being accountable for any depreciation in value of furnishings.

ACCOUNT CURRENT.

229. An account current including interest is used to ascertain the exact balance of an account when payments have not been made on the date of maturity. Any date of settlement may be used, usually today, and interest is computed on each debit and credit item from the settlement date forward and backward to the maturity date. On the debit side of the account, debit interest is written in black ink, but on the debit side of the account, credit interest is written in red ink.

On the credit side of the account, credit interest is written in black ink, but on the credit side of the account debit interest is written in red ink. This is to distinguish debit interest from credit interest.

After finding each item of interest, the credit interest in red ink on the debit side of the account is transferred to the credit side of the account in black ink, to be added with the other items of credit interest in finding the balance of interest. The debit interest in red, on the credit side of the account, is transferred in black to the debit side to be added with the debit items in finding the balance of interest.

The balance of interest is to be added to the debit or credit side of the account. The balance of interest makes the interest columns add alike, provided you do not include items of interest in red ink. You must not add debit and credit interest together. The account is closed (i.e., ruled in red ink) and the balance of account, including interest is carried down on the date of settlement.

The statement is dated and signed as in an account sale.

COMPOUND INTEREST.

230. COMPOUND INTEREST is the interest computed on the entire amount of a loan as found at the end of each year or specified time by adding the principal and the interest then due.

231. Interest, when compounded at all, is usually compounded annually, semiannually, or quarterly.

232. To find the Compound Interest of any sum for any time.

RULE.

Find how many times the interest is to be compounded in the given time.

Find the amount of the principal for the first period or specified time. Make this amount the principal on which to find interest for the second period, and the amount of the second period, the principal for the third, and so on.

Find the amount of the last amount for the months and days, if any, less than an entire period, and this sum is the amount of the principal for the entire time. Subtract the principal, and the remainder is the compound interest.

NOTE 1.- The pupil should bear in mind that when the rate is any other than 6 per cent. the interest should be found each time at the given rate. That is, it cannot be found at 6 per cent. throughout the work, and then be changed to the interest at the given rate, as in Simple Interest.

NOTE 2. - In most places where Compound Interest is used, a table is given showing the amount of $1.00 at the rates in common use for from 1 to 50 years, or periods. The amount of any principal for any time within this limit is found by multiplying the amount of $1 00 for the given time, as found in the table, by the given principal.

EXAMPLES.

1. Find the amount of $1200 at compound interest from Feb. 28, 1907, to June 11, 1911, interest compounded annually.

2. What is the compound interest of $575 at 5% from July 23, 1903, to Aug. 6, 1907, interest compounded annually? 3. March 16, 1903, I borrowed $450, agreeing to pay interest at 4% per annum, interest to be compounded semiannually. How much did I owe April 1, 1907?

4. How much is due me July 25, 1907, on a loan of $1550, made Aug. 10, 1902, at 41%, on which no interest has been paid, the interest to be compounded semi-annually if not paid each 6 months?

5. Nov. 15, 1901, I borrowed $4800, agreeing to pay the interest semi-annually at 5% per annum, or allow the interest to be compounded when not paid as agreed. I paid the interest as due till May 15, 1903, and afterward paid nothing till Sept. 10, 1907, the date of final settlement. How much did I then owe?

6. I loaned $890 Jan. 1, 1905, at 6%, the interest to be compounded quarterly if not paid. The interest was not paid till Aug. 20, 1907, the date of settlement. What was the interest then due?

7. Which is the greater, and how much, the simple interest of $1575.50 at 41% from July 24, 1904, to Oct. 19, 1907, or the compound interest of the same sum for the same time compounded quarterly at 4% per annum?

8. I borrowed $1950 Nov. 20, 1904, at 5%, with the agreement that the interest should be compounded when not paid quarterly. I made the first five payments when due, but failed to pay the rest till Sept. 13, 1907. What was the amount of my debt on that date?

9. A gentleman deposited $100 in a Savings Bank for the benefit of his son who was then 12 years of age. Each year thereafter he deposited $100 till his son was 21 years of age. What was the amount of this fund when he was of age, interest having been compounded annually at 41% ?

10. What is the amount of an annual rent of $450 due in semi-annual instalments, if unpaid from July 1, 1903, to Jan. 1, 1907, interest being charged at 5 per cent. and compounded when the payments were due?