The time in days intervening between the date of each item and the time of settlement is, evidently, the number of days each item is on interest. Then, if each item be multiplied by the number denoting its number of days, and divided by 6000, the result will be its interest (Art. 356, Note 1), and the sum of the interest of the several items of debit will be the aggregate interest of the debit side, and the same principle will hold in finding the aggregate interest of the credit side. But the same result may be obtained in a shorter way by dividing the sums of the debit and credit products by 6000, which is done most readily by pointing off three decimal places at the right of each sum (Art. 78), and dividing by 6, as in the operation. Then the balance of items and the balance of interest we add together, and thus obtain the true balance.

2. Required the true balance of the following account, on October 1, 1857, the time of settlement, allowing the rate of interest to be 6 per cent. Ans. $189.81.

* Introduced only to illustrate the manner of balancing the account.

Dr.

1857.

Grant & Barker in account and interest with J. Ritchie.

Cr.

1857.

We find the several products by multiplying, as in working the preceding example. The products belonging to items becoming due previous to settlement we arrange as belonging to their respective sides. One item, however, becomes due 9 days after the time of settlement, thus requiring its side to be diminished by the interest of that item for the 9 days, or that the opposite side should be increased by that interest. We, therefore, write the product of this item with the debit products. We may now find the interest of each side separately, and then subtract that of the one side from that of the other for the balance of interest; but we obtain the desired result by a shorter method by finding the interest corresponding to the difference of the sums of the debit and credit products. Hence the general

RULE. · Multiply each item of debit and credit by the number of days intervening between its becoming due and the time of settlement. Place the product of each item becoming due BEFORE the time of settlement on its own side of the account, and place the product of each item

* Introduced only to illustrate the manner of settlement.

becoming due AFTER the time of settlement on the side opposite to its

own.

The difference of the sums of the debit and credit products, with three places pointed off on the right for decimals, divided by 6, will give the balance of interest.

Place the balance of interest on its own side of the account, and the difference then between the two sides will be the true balance.

NOTE 1. The interest as found by the rule is that at 6 per cent. From which the interest at any other rate may be found by aliquot parts.

NOTE 2. Besides the above method of settling accounts drawing interest, accountants often make use of tables constructed to aid in equating and balancing accounts.

EXAMPLES.

3. Alfred Hicks is in account and interest with Keen & Lee, as follows: Debtor, January 1, 1857, to merchandise, on 6 months, $156.10; February 3, to cash paid draft, $100; March 20, to merchandise, on 4 months, $316.90; March 30, to merchandise, on 4 months, $162.00; May 15, to cash paid draft, $100; August 20, to merchandise, on 6 months, $213.00. Creditor, February 1, by cash, $120.00; March 20, by merchandise, on 4 months, $ 420.16; May 1, by merchandise, on 6 months, $300; July 1, by merchandise, on 4 months, $50; September 10, by merchandise, on 4 months, $99.84. Required the true balance, if settled on December 1, 1857, interest being at 6 per cent. Ans. $61.36.

4. Required the true balance due on the following account, on March 25, 1857, each item drawing 7 per cent. interest from its date. Benjamin Lyman in account and interest with John Russell: Debtor, July 4, 1856, to merchandise, $200; September 8, to merchandise, $ 300; September 25, to merchandise, $250; October 1, to merchandise, $ 600; November 20, to merchandise, $400; December 12, to merchandise, $ 500; January 15, 1857, to merchandise, $100; March 11, to merchandise, $120. Creditor, July 20, 1856, by cash, $300; August 15, by cash, $350; September 1, by cash, $400; November 1, by cash, $320; December 6, by merchandise, $600; December 20, by cash, $100; February 1, 1857, by cash, $200; February 28, by merchandise, $ 150.

Ans. $50.64.

ACCOUNTS OF STORAGE.

440. ACCOUNTS of storage of property contain an entry of the number of articles received and delivered, with the date of each transaction.

Storage is usually reckoned by the month of 30 days, at a certain price per barrel, bale, box, &c.

The number of articles on which storage is chargeable for one month, or any other time agreed upon, is usually determined by an average.

441. To find the average of storage for a month, or any other time.

Ex. 1. What will be the cost for the storage of flour at 6 cents per barrel, which was received and delivered as follows: Received May 1, 1857, 1000 barrels; May 26, 2000 barrels. Delivered May 16, 500 barrels; June 1, 1000 barrels; June 12, 1100; July 2, 400.

prod.

Ans. $114.

The storage of 1000bbl. for 15d.

1000 x 15 15000+500bbl. for 10d.

500

2500bbl. for 5d.

1500bbl. for 11d.

5000+400bbl. for 20d.,

is the same as the storage of 57000bbl. for 1d., or 1900bbl. for a month of 30

Bal. 1500 x 11 = 16 500 days. And the stor

"12, Deliv. 1100

Bal. 400 X 20 = 8000

July 2, Deliv. 400

1900bbl. x .06

Chargeable for 1 month,

=

310) 5 7 0 00
1900

$114, cost of storage.

age of 1900bbl. at 6 cents each equals $114, the answer required.

În practice, it is customary, when the number of articles

upon

which stor

age is chargeable, as

found, contains a fraction less than a half, to reject the fraction; but if it is more than a half, to regard it as an entire article.

RULE. Multiply the number of barrels, or other articles, by the number of days they are in store, and divide the sum of the products by 30, or the number of days in any term agreed upon. The quotient will give the number of barrels, or other articles, on which storage is chargeable for that term.

EXAMPLES.

2. What is the cost of storage of tea at 3 cents a chest per month, received and delivered as follows: Received, May 16, 1857, 4560 chests. Delivered, May 30, 564 chests; June 1, 904 chests; July 9, 1000 chests; August 3, 1500 chests; and August 16, the balance.

3. Received, and delivered, on account of Richard Gordon, sundry bales of cotton, as follows: Received, January 1, 1857, 2310 bales; January 16, 120 bales; February 1, 300 bales. Delivered, February 12, 1000 bales; March 1, 600 bales; April 3, 400 bales; April 10, 312 bales. Required the number of bales remaining in store on May 1, and the cost of storage up to that date, at the rate of 5 cents a bale per month. Ans. In store, 418 bales; cost, $306.90.

MISCELLANEOUS EXAMPLES.

1. The stocks of three partners, A, B, and C, are $3500, $2200, and $2500, and their gains $ 1120, $ 880, and $1200, respectively, and B's stock continued in trade 2 months longer than A's. Required how long the money of each was in trade. Ans. A's money, 8mo.; B's, 10mo.; C's, 12mo.

2. A merchant failed for $15000. On settling up, his net assets, equably distributed, gave only $540 to a creditor whose demand was $660 more than that sum. How much did the bankrupt pay on a dollar, and how much did he owe more than he could pay?

Ans. 45 cents on a dollar; owed $8250 more than he could pay.

3. A and B pay a poll tax each of $ 1.50, and a property tax at the rate of 7 mills on a dollar. A's entire tax is $ 64.50, which is just $14 more than B's entire tax. What is the taxable property of each?

Ans. A's property, $ 9000; B's property, $7000. 4. The expenses of a district school are, for fuel, $ 20, for