If the balance of interest had been on the credit side of the account, the cash balance due would have been $550 minus $3.82, or $546.18.

To find the average date, we simply divide the balance of the interest by the interest on the balance of the account ($550) for 1 day, and the quotient gives us 42 days to count back from Jan. 1, 1901, or Nov. 20, 1900.

i. If an item falls due after the date of settlement, the interest on such item should be transferred to the interest column on the opposite side of the account.

2. Use compound subtraction in finding the time when over a year.

3. In computing interest on the items, consider only the whole number of dollars by dropping the cents when less than half a dollar, and regarding the cents as a dollar when equal to or greater than half a dollar. In adding the items, however, the exact figures must be taken.

4 The Cash Balance may also be found by first finding the equated date of the payments, and computing the interest on the balance due at that time, from the equated date to the specified time; or if the equated date is later than the date of settlement, discount the balance of the account for the intervening time.

2. What was the cash balance on the following account, Jan. 1, 1899, interest at 6% ?

DR.

JOHN ROX.

CR.

1

3. Find the cash balance of the following account, May 1, 1898, interest at 6%.

4. Find the cash balance of the following account, Sept. 1, 1900,

interest at 6%; also the average date.

5. Find the cash balance due on the following account, Apr. 1, 1904, interest at 6%.

6. Find the cash balance of the following account, Jan. 1, 1901,

interest at 6%.

DR. D. C. Box in % current with JNO. ROE & Co.

CR.

AVERAGING ACCOUNT SALES.

869. When a consigment of goods is received to be sold on commission, the consignee usually pays the freight charges and other necessary items of expense, and frequently makes cash advances to the consignor, charging interest on the same or retaining the net proceeds sufficiently long to offset the accrued interest on the advances.

870. To find the date of payment of the net proceeds of a consignment.

RULE.-Find the average date of the sales as in simple average. Then take this date as the date for the total sales, and of the commission (and guaranty, if any). Place the charges and their dates on the debit side, the total sales and their average date (as found) on the credit side, and average the account.

Another method is to date the commission on the last date of sales, and equate the account in the ordinary way, taking the charges as debits and the sales as credits. While this method is simpler than the other it is not so exact, and hence the examples should be solved by the former method.

1. What are the net proceeds of the following account sales, and when was it due?

2. Find the net proceeds of the following account sales, and the date when due.

3. Find the date for settlement of the following account sales,

and the cash balance on Sept. 1, 1900, at 6%.

Suggestion.-First find the equated date for the payment of the net proceeds; then add the interest to the net proceeds for the intervening time from the equated date to the time of settlement.

4. Find the date for settlement of the following account sales, and the cash balance on Apr. 1, 1904, at 6%.

PHILADELPHIA, PA., Apr. 1, 1904.

GENERAL REVIEW.

871. 1. A house which cost $4750 was sold for $5600. What was the gain per cent. ?

2. Find the cost of a bill of hardware listed at $850 with discounts 15%, 10%, and 5%.

3. How much must be received for a lot of grain which cost $3500 to gain 24% ?

4. A man sold a house for 10% less than it cost him. If he had sold it for $5175 he would have gained 15%. For how much did he sell it?

5. A bought goods in New York, costing $442.38. Transportation, casing, etc., adds 5% to the first cost. At what price must the goods be sold to gain 25% on the full cost?

6. The gross proceeds of a sale were $475. The total expenses were storage $8.50, drayage $10.75, and commission 3%. What were the net proceeds of the sale?

7. A grocer mixed 20 lb. tea at 40% with 30 lb. at 50%. At what price per pound must he sell the mixture to gain 25% ?

8. If it require 164 rd. of fencing for a rectangular field 50 rd. long, how many acres does it contain?

9. A cistern 8 ft. in diameter and 13 ft. deep lacks 2 feet of being full of water. How many gallons of water in the cistern?

10. What is the premium for insuring a house valued at $3600 for of its value when the rate of premium is 13% ?

11. A farmer bought a yoke of oxen for $150, which was 25% less than their real value, and sold them for 25% more than their real value. What was his gain per cent.?

12. What is the average width of a tapering board 234 in. wide at one end and 17ğ in. wide at the other end?

13. If the board in problem 12 is 24 ft. long, how many square feet does it contain?