AVERAGE OF ACCOUNTS. 495. The Balance of an account is the difference between its debtor and creditor sides. 496. The Average of an account is the equitable time of the balance becoming due, or being entitled to interest. 50. What is the balance of the following account, and at what date should the balance begin to draw interest? We select for convenience June 19, the earliest date at which any of the items of account become due, as the point of reckoning, and find the aggregate of the terms of credit of the credit items, with reference to the selected date, to be equal to the credit of $1 for 18000 days, and the aggregate of the terms of credit of the debit items to be equal to the credit of $1 for 16300 days. Striking the balance, it appears, at the selected date, $100 subject to a credit equal to the credit of $1 for 1700 days is in favor of John L. Martin. But the credit of $1 for 1700 days is equal to that of $100 for of 1700 days, or 17 days; hence the $100 was due in equity 17 days before June 19, or June 2. If, however, the balance of items and terms of credit had been both on the same side of the account, the balance would have been due after, instead of before, the selected date. 497. Rule for Averaging Accounts. Select the earliest date at which any of the items of account becomes due, and therefrom reckon the terms of credit. Multiply each term of credit by the number denoting the corresponding item, and divide the balance of the sums of the products by the balance of the sums of the items of the account, and the quotient will be the average term of credit. When the balances are both on the same side of the account, the time must be added to the selected date, but subtracted from that date when the balances are on different sides. The same result may be reached by what is called the Interest Method. Thus, Compute interest upon each item for the days intervening, between its becoming due and the earliest date at which any item becomes due. Divide then the balance of interest by the interest of the balance of items for one day, and the quotient will be the average term of credit. NOTE 1.-. A convenient rate of interest in averaging accounts is 12%, which is .01 of the principal for 30 days and .001 for 3 days. NOTE 2. The note under the rule Art. 334 applies in averaging accounts. 51. Find when the balance of the following account averages 52. Find the balance of the following account, and, allowing each item to be on 30 days, the time the balance becomes 53. Find the time when a note for the balance of the following equated account should begin to draw interest. Due March 2 DR. $600 Due March 14 CR. $400 54. Find the face of a note which must be given for the balance of the following account, and the date at which it should begin to draw interest. 498. A Receipt is a written acknowledgment that money or other property of value has been received. $250. Receipt for Payment on Account. BOSTON, Oct. 19, 1881. Received from Henry F. Jordan Two hundred fifty dollars on account. Smith & Watson. Receipt for Rent. Received, Portland, May 5, 1882, from James Johnson, Thirty-one dollars for rent of house, No. 14 Austin Street, for month ending April 30, 1882. 84 Received from John Randall Twenty-six 8 Dollars in full of all demands to date. S. A. Caswell & Co. 499. An Order is a written request to deliver money or goods to some person mentioned, or to his order, or to the bearer, on account of the person signing the request. Order for Money. Messrs. Simmons & Son, BURLINGTON, Dec. 12, 1881. Gentlemen: Please pay S. P. Wright, or order, Seventyfive Dollars, and charge to our account. Reed, Pratt, & Co. Order for Goods. MANCHESTER, Nov. 4, 1881. Mr. W. N. Goddard, Please pay to James Brewer, or order, Sixty Dollars in Goods from your store, and charge to the account of DUE-BILLS. Charles Dole. 500. A Due-Bill is a simple acknowledgment of a debt in writing. Due-Bill for Goods. Due, New York, Aug. 9, 1882, to H. L. Chase, Twentythree 65 Dollars in goods from my store. 100 501. A Check is a written order addressed to a bank by a person having money deposited, requesting the payment on presentation of a certain sum of money to a person named therein, or to his order. The National Bank of Commerce. Pay to James F. Browning, or order. 100 Stamp. Charles F. Hudson. TAXES. 502. A Tax is a sum of money assessed upon the person, property, income, or business of individuals for public use. 503. A Poll Tax is a tax upon the person, a Property Tax is a tax on property, and an Income Tax is a tax on income. 504. Assessors are officers appointed to take an inventory of taxables, and to apportion the tax to be raised among the tax-payers. |