PARTNERSHIP 138. Partitive proportion. If partners invest equal sums and contribute equally in work, the profits are divided equally. Otherwise partitive proportion (page 119) is employed. 139. Partners usually have an annual settlement. Money withdrawn by any partner during the year is charged to him with interest at the settlement. 140. Illustrative problem. Brown, Edgcomb, and Thomas form a partnership on February 1, Brown putting in $2500, Edgcomb $4000, and Thomas $3500. What is the share of each in $6000 profits on the following February 1? 1. Since the total capital is $10,000, and Brown put in $2500, Brown's share is 2500 100009 or 2. Therefore Brown receives of $6000, or $1500 WRITTEN EXERCISE 1. X, Y, and Z invest $345, $625, and $730, respectively. They make $153. What is the share of each? 2. A, B, and C invest $2200, $3350, and $1650, respectively. They make $1440. What is the share of each? 3. Roberts, Jacobs, and Jameson invest $2700, $3250, and $2050, respectively. They make $2400. What is the share of each? 4. A, B, and C pay $195 irrigation taxes for their farms. A has 250 acres, B 180 acres, C 220 acres. What is the share of each? X 5. X, Y, and Z pay $1085 for some water power. uses 30 horse power, Y 45 horse power, Z 80 horse power. What should each pay? 6. Three men rent a summer cottage. The first occupies it 5 weeks, the second 4 weeks, and the third 3 weeks. At $264 for the season, what should each pay? 7. Day and McFarlane pasture some cattle in a field, Day putting in 62 head for 7 weeks, and McFarlane 48 head for 5 weeks. The bill for pasturage being $101.10, how much should each pay? 8. Two contractors for rock excavating in a tunnel run 16 and 21 drills respectively, getting compressed air from the same engine. If the expense of furnishing the compressed air is $555, what is the share of each? 9. Two farmers whose lands join have a windmill and tank in common. They pay for the annual repairs accord ing to the greatest number of head of cattle kept by each at any time during the year. If they have 37 and 48 head respectively, and the repairs amount to $25.50, what is the share of each? 10. Messrs. Brown and Jones form a partnership, Brown furnishing $4200 and Jones furnishing $3300. After a year Brown puts in $500 more. At the end of 2 years they sell out for $9300. How much should each receive? 11. Ayres and Ives go into partnership, Ayres putting in $3500 and Ives $6500. Ives is to give all of his time to the business and take out $2000 before any division of profits. If they make $2500 this year, to how much of it is each entitled? 12. Glover and Staughton go into partnership, Staughton putting in $7000 and Glover $9000. Glover doing no work, it is agreed that Staughton shall take $2000 a year from the profits before a division. The profits last year were $6400. What was the share of each? 13. Webb, Bull, and Smith form a partnership, Webb putting in $8000, Bull $3000, and Smith $5000. It is agreed that Bull shall contribute no work, but that Webb shall receive $1500 and Smith $900 before the rest of the profits are divided. The year's profits were $7200. How much did each receive? 14. Messrs. Davids, Glover, and James buy a house for $9500. Davids puts in $3200, and Glover and James put in the rest, Glover putting in half as much as James. They rent the house this year for 10% of its cost, and pay $15 for insurance, $40 for taxes, and $40 for repairs. What is the share of each in the net receipts? 15. Wood, Wallace, and Harris own a spring, and pay for repairs to the spring house and piping according to the amount of water used by each, as shown by their water meters. If the respective amounts used during a given period are 34,000 gal., 26,500 gal., and 42,500 gal., what is the share of each in repairs amounting to $24.72 ? EXCHANGE 141. Paying bills at a distance. If a man owes money to some one living in another place, he may send it by a registered letter. He will be more likely, however, to pay his bill by a check, a money order, or a draft. 142. Exchange. The payment of money by means of checks, money orders, or drafts is called exchange. 143. Paying by check. If a man sends his check for the amount, the one to whom he owes the money will deposit it in the bank where he keeps his account. This bank will send it to the debtor's bank for collection, and will probably charge a small amount for the trouble. 144. Paying by money order. A money order may be purchased at the post office, or from an express company, or it may, at considerable expense, be telegraphed. Postal or express orders may be sent to the creditor, who can then obtain the money at his post or express office. The extra cost of postal money orders is as follows: For sums not exceeding $2.50, 3 cents; above this, not exceeding, $5, 5 cents; above this, not exceeding $10, 8 cents; above this, not exceeding $20, 10 cents; above this, not exceeding $30, 12 cents; above this, not exceeding $40, 15 cents; above this, not exceeding $50, 18 cents; above this, not exceeding $60, 20 cents; above this, not exceeding $75, 25 cents; above this, not exceeding $100, 30 cents. ORAL EXERCISE Referring to the above list, state the cost of money orders for: 3. $92.30. 4. $16.30. 1. $31.50. 2. $52.75. 145. Paying by bank draft. One of the most common methods of paying a debt in another place, particularly debts of large size, is by means of the bank draft. No. 48/04 MERCHANTS NATIONAL BANK OF AUSTIN AUSTIN, TEXAS, July 6, 1907 A draft is therefore the same as a check, except that it is made by the cashier of some bank and is drawn on another bank. Banks usually charge a slight premium on the face of the draft. Thus, a $250 draft at 0.1% premium would cost $250 + 0.1% of $250 $250.25. If John Roberts, who purchased the above draft, owed Robert Jones the money, he would indorse it, thus: Pay to the order of Robert Jones John Roberts It might also have been made payable directly to the order of Robert Jones in the first place, but this is not the custom. Drafts on large money centers are usually cashed for customers of the bank without any discount. 146. Illustrative problem. What would the above draft cost at 0.1% premium? 0.1% of $78.75 $0.08, to the nearest cent. = The bank, however, would probably charge 104 to make a convenient amount. Therefore it would cost $78.85. |