Page images
PDF
EPUB

OPERATION.

Mar. 6,

56

Dr.
May 1, 1886, focal date.
1886. Feb. 19, $300. 71 days to focal date = $3.55, interest.
Feb. 28, 300. 62

= 3.10,
300.

= 2.80, Total Dr., $900.

$9.45, total Dr. interest.

Cr. 1886. Feb. 1, $ 600. 89 days to focal date = $ 8.90, interest. Feb. 10, 1800. 1800. 80

= 24.00, Total Cr., $2400.

$32.90, total Cr. interest.

9.45, total Dr. interest. Cr. balance, $1500.

$23.45 Interest of $1500 for 1 day = $.25. $23.45 = $.25 = 934 = 94 days equated time. 94 days back from May 1, 1886 = Jan. 27, 1886, as before found.

66

[ocr errors]

4.20,

EXAMPLE (same as first illustrated ). — Proof, assuming Jan. 27, 1886, as a focal date.

OPERATION.

Dr. 1886. Feb. 1, $ 600. 5 days after focal date = $ .50, discount. Feb. 10, 1800. 26

4.70, total Dr. discount.

Cr. 1886. Feb. 19, $300. 23 days after focal date = discount. Feb. 28,

300. 32 Mar. 6, 300. 38

= 1.90,

$4.65, total Cr. discount.

$1.15, 1.60,

66

Cr. balance, $1500.
Discount on $1500 for 1 day, $.25.

$4.70, total Dr. discount. 4.65,

Cr. $.05, difference.

EXPLANATION.—The difference between the Dr. discount and the Cr. discount is 5 cents, or = } of the discount on the $1500 balance for 1 day, or less than one-half of 1 day's discount, thus proving the balance to have been due since Jan. 27, 1886, as determined by both the former operations, and rendering an explanation which could be made in the usual form quite unnecessary.

Rule. Find the face balance of the account, and also the excess of interest from the latest date as a focal date. If the balance of account and excess of interest be on the same side, date back; if on opposite sides, date forward.

806. 1.

EXAMPLES FOR PRACTICE.
When is the balance of the following account due by equation ?
FRANK H. BARNARD.

Cr.

Dr.

1887.

[blocks in formation]
[blocks in formation]

300

2. What is the balance of the following account, and when due by equation ? Dr.

BENJ. F. HAWKINS.

Cr.

1887. Jan. 14 To Mdse.,

28 Feb. 3

15

1887.
Jan. 20 By Cash,
Feb. 10

1000 000

600
300
500
600

3. If money be worth 7% per annum, what was the cash balance due on the following account July 1, 1887 ? Dr. VICTOR E. BROWN & Co.

Cr.

[blocks in formation]

if 4. What was the cash balance due on the following account Jan. 1, 1889, money be worth 8% per annum ? Dr. HENRY J. SANFORD & BRO.

Cr.

1888.

[blocks in formation]

1888.
Oct.
Nov.
Dec.

[merged small][merged small][ocr errors]
[blocks in formation]

5. Find the balance of the following account, and when due by equation. Dr. Louis K. GOULD.

Cr.

[merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small][merged small][merged small]

6. What is the balance of the following account, and when due by equation ? Dr. REED & Co.

Cr.

1888.

1888.

66

66 Mdse.,

June 14 To Mdse.,
300 July 1 By Cash,

100 29

66
Cash,
150 Aug. 1

100 Aug 4

2001
Sept. 1

100 Oct. 31 " Cash, 100 Oct. 1

100 1889. Jan. 1

450 REMARK. – Interest may be computed on one of the four similar Cr. items for the aggregate of their days.

When is the balance of the following account due by equation ?
Dr.
KING & SHERWOOD.

Cr.

66 Mdse.,

[blocks in formation]

8. When is the balance of the following account due by equation ? Dr,

SAMUEL PECK & Son.

Cr

[blocks in formation]

9. Find, 1st, the balance of the following account; 2d, when due by equation. Dr. WALTER L. PARKER.

Cr.

[blocks in formation]

10. Find, 1st, when the following account is due by equation ; 2d, the cash balance due Jan. 1, 1888, if money be worth 5% per annum. Prove the result. Dr. John MONTGOMERY & Co.

Cr.

[blocks in formation]

REMARK.-In case a negotiable paper is given, its maturity is determined in the usual way, by adding to its express time three days of grace. If the paper bear interest, its value is equivalent to its face as cash at its date; while if the paper be non-interest bearing, its value is equivalent to cash at its full maturity.

11. Find, 1st, the balance of the following account; 2d, when due by equation; 3d, cash balance due Jan. 1, 1888, if money be worth 6% per annum. Prove the result. Dr. R. E. ROGERS & BRO.

Cr,

2 mo.,

1887.

1887.
May 14 To Mdse., 1 mo., 300 May 31 By 2-mo. note (no
June 3

60 da.,
200

interest),

240 July 31

400 July 15

66 30-da. note, on
interest

150
1888.
Jan. 1 Cash,

100 12. Find, 1st, the balance of the following account; 2d, when due by equation; 3d, the cash balance due Jan. 1, 1888, if money be worth 10% per annum.

Prove the result. Dr. KING, Son & Co.

Cr.

[ocr errors]

200

2 mo.,

200

1887.

1887. Oct. 1 To Mdse., 1 mo., 150 Nov. 1 By Cash, Nov. 3

150 Dec. 1

• 3-mo. accpt. (no Dec. 14

60 da.,
3001

interest), 1888.

1888. Jan. 15

Feb. 15 13. When is the balance of the following account due by equation ? Dr.

SPAULDING & Co.

300

66 Cash,

200

Cr.

1888.

4 mo.,

1888.
Oct. 15 To Mdse., 30 da., 27850||| Nov. 20 By Cash,

210 31

147|50||| Dec. 31 2-mo, accpt. (no 1889.

interest),

175 Jan. 5

160/25 1889.
Feb. 14
60 da. 311|50|| Mar. 1

66 60-da. note, on
interest,

22050 14. Find, 1st, the balance of the following account; 2d, when due by equation; 3d, the cash balance due Mar. 1, 1889, if money be worth 5% per annum. Prove the result. Dr. ABRAHAM BRADLEY.

Cr.

[blocks in formation]

15. Find, 1st, the balance of the following account; 2d, when due by equation ; 3d, the cash balance due Apr. 1, 1889, if money be worth 7% per annum. Prove the result.

[blocks in formation]

When are the net proceeds of the following account sales due by equation?

Kansas City, Mo., Oct. 3, 1888. Account Sales of Flour, Sold for account of HENRY H. GRINNELL & Co.,

Burlington, Iowa. By C. H. BRAYTON.

1888.

Sept. 23

95 barrels to Hudson & Son, @ $5.60, cash, Oct. 1 200 66 Chas. H. Knapp,

@ $5.75, 1 mo., 18 65

@ $5.80, 60 dil, Nov. 3 110

66 Wm. Clark & Bro., @ $5.80, 30 da., 25 130 56 Clinton McPherson, @ $5.75, cash,

Charges. Sept. 24 Freight,

26 Cartage, Oct. 28 Cash advanced on consignment, Nov. 15 Cooperage,

25 Commission, 4%,

6250

3000 200000

500 13778||

66

REMARKS.—1. In rendering Accounts Sales, the expenses (freight, storage, commission, etc.) charged constitute the Debits of the account, while the gross sales constitute the Credits. Equate such accounts in the usual manner.

2. After extension of time to determine actual due (or just Cr.) dates of the items on both sides of the account, should it then be found that certain items of the Dr. have dates corresponding to those of certain items of the Cr., such items, if of equal amount, may be cancelled the one against the other; if of unequal amounts, they may be offset for like amounts, and only their difference enter into the work of the equation.

1

« PreviousContinue »