465. 1. What should be the date of a note given to settle the following account? Aug. 7 + 28 days=Sept. 4, the average time. ANALYSIS. From the dates at which the various amounts become due, we select the latest, which is Aug. 7, for the assumed time of settlement, and multiply each amount by the number of days intervening between that date and the time when each item of the account becomes due. The debit side of the account shows there is duc $340 and the lise of $1 for 7250 days, and the credit side shows that $225 has been paid, and that the debtor is entitled to the use of $1 for 10400 days, if the time of settlement is Aug. 7. Subtracting the amounts, there is shown to be $115 due, and the debtor is entitled to the use of $1 for 3150 days. Therefore, he should not be required to pay the account until the time when the use of $115 is equal to the use of $1 for 3150 days, which is 28 days. 28 days after Aug. 7 is Sept. 4. RULE.—Multiply cach amount due by the number of days intervening between the time it becomes due and the latest date at which any sum on either side of the account becomes due. Divide the difference between the sum of the products of the debit and credit side of the account, by the balance due on the account. The quotient will be the average term of credit. 1. When the balances are both on one side of the account, the term of credit is to be counted backward from the date at which the first amount becomes due, but forward from that date if the balances are on opposite sides. 2. The average term of credit may also be found by reckoning interest upon each sum due for the number of days intervening between the time it becomes due, and the earliest date at which any sum becomes due; then dividing the balance of the interest by the interest on the balance of the account for one day. This is called the Method by Interest. The result is the same whether the average termi of credit is found by the method by products or by interest. 2. Find the average term of credit of the following account: 3. Find by both methods when the balance of the following account becomes due. 4. When should interest begin on the following account? Dr. JAMES HOWARD, in acc't with HIRAM SIBLEY. Cr. 5. Find the average term of credit of the following account? 6. When should interest begin on the following account? 7. What will be the cash balance of the following account, Cr. 466. 1. If two men, who have equal sums invested in the same business, gain $100, what is each man's share of the gain? -2. If one man furnishes of the capital, and another of it, and the gain is $1200, what should be the gain of each? 3. Mr. A. furnishes $3000 of the capital, and Mr. B. furnishes the balance, which is $5000. What part of the profits should each receive? 4. Four partners furnish money in the proportion of $2000, $3000, $4000, and $5000 respectively. What part of the gain should each one receive? 5. Three men engage in business and furnish the following sums respectively: A, $5000; B, $4000; C, $3000. How much of the gain should each receive if $1200 was gained during the year? 6. The cost of a pasture was $27. A had in it 5 cows for 3 weeks, and B 3 cows for 4 weeks. What should each one pay? 7. The profits of a company were $800 for a certain time. What share of the profits did each partner receive, if the capital contributed by them was $900, $700, and $800 respectively? 8. A and B formed a partnership after A had been doing business alone for 6 months. A had $5000 invested during the year, and B had $10000 invested for 6 months. The gain was $5000. What was each one's share ? DEFINITIONS. 467. A Partnership is an association of two or more persons, for the purpose of conducting business. 468. Partners are the persons associated in business. They are called collectively a company, a firm or house. 469. The Capital is the money employed in business. 470. PRINCIPLE. —Partners share the gains and losses in proportion to the amount of the capital each invests, and the length of time it is employed. B. faz CASE I. 471. When the capital of each partner is employed for the same time, WRITTEN EXERCISES. H PROCESS. ner or 1. A, B and C are partners, having furnished $5000, $6000 and $8000 capital respectively. If during the year they gain $2850, what is each partner's share of the gain? ANALYSIS. Since each part$5000+ $6000+ $8000=$19000 should ig of $2850= $750, A's share. share the gain in proportion to or of $2850= $900, B's share. the amount of 1990%% or is of $2850=$1200, C's share. capital he con$2850, Whole gain. tributed, we find what part of the whole capital each partner contributed. A furnished ing of the capital, and is therefore entitled to ij of the gain, or $750. B furnished 195 of the capital, and is entitled to my of the gain, or $900. C furnished is of the capital, and is therefore entitled to 8 of the gain, or $1200. 5000 19000 6000 19000 |