Example 2. A man begins a banking account on Jan. 18 by putting in £1000; on Feb. 9 he draws £89. 7s. 6d.; on Mar. 3 he puts in £100, and then on Mar. 5 he draws £96. 15s. 3d.; on Mar. 17 he draws £230. 3s. 7d., and on April 3 he draws £105; in May his CURRENT ACCOUNT. 211 account remains unchanged, but on June 17, 18, 19 he draws £50, £76 and £90 respectively. Balance his account up to June 30. Interest 2 p.c. p.a. Example 3. A merchant supplies a trader with goods to value of £1000 on March 5, 1890; the trader pays £250 on account on June 3, £300 on Sept. 24; find cash balance due on Dec. 31. Interest 10 p.c Example 4. The terms of a transaction are 6 mos. credit, 10 p.c. discount for cash within 14 days, 5 p.c. discount within one month, 2p.c. within 3 mos. Find balance due without discount on this account. 1890. Cr. Dr. £1200 10 p.c. disc. 133.333 .. On Aug. 10 balance due = £153 475 without discount. A discount of 10 p.c. on a debt enables £90 to pay £100. .. £1200 will pay £1333-333. A discount of 5 p.c. on a debt enables £95 to pay £100. .. £300 will pay £315.789. A discount of 2 p.c. on a debt enables £97 to pay £100. will pay £512.821. .. £500 2315.418 2161.943 £153.475 EXAMPLES. 1. Find cash balance due on Dec. 31, on a bond for £750 dated March 10, and endorsed £200, May 16; £350, Sept. 30. Interest 8 p.c. p.a. 2. A bank allows overdraft to £5000, viz. £3000 on Ap. 6, £2000 on May 20. The debtor pays in £1500 on June 30, £1750 on Aug. 1. What will be the balance against him on Sept. 1 Interest 6 p.c. p.a. March 5, £800. 10s. Od., (To cheque). Ap. 1, £250. Os. Od., (To cheque). May 31, £5000. Os. Od., (Order to buy Stock). 4. Find cash balance due on Sept. 1, of this account. Interest 5 p.c. p.a. Dr. April 3, To goods, £1500. Cr. June 18, By cash, £700. 5. Find cash balance due on June 30, of this account. Interest 7 p.c. p.a. Dr. Jan. 20, To goods, £632. 5s. Od. Cr. March 8, By cash, £1000. 6. The terms of a transaction are 5 p.c. discount within 14 days, 21 p.c. within 3 mos. Find balance due without discount on this account. Dr. 1892. Jan. 20, To goods, £2000. Feb. 9, To goods, £1520. Cr. 1892. Jan. 31, By cash, £1800. May 8, By cash, £1200. 7. The terms are 10 p.c. for cash, 5 p.c. within one month, 3 p.c. within 3 mos., 1 p.c. within 6 mos. Find balance due without discount on this account. Dr. 1891. Feb. 17, To goods, £3500. Cr. 1891. Feb. 17, By cash, £1000. SECTION IX. EXCHANGES AND EXCHANGE 1. Moneys and Bullion. The Moneys of all countries are of two kinds, (1) Metallic Currency, (2) Paper Currency. Metallic currency consists of stamped pieces of metal (chiefly gold, silver, or bronze) of certain weights and fineness (purity) called the standard and regulated by law. The making and issuing of coin are usually in the hands of the Executive Government. Private individuals frequently have the right to have any bullion coined into money on bringing it to the Mint. In England this is done in the case of gold free of expense in France, Germany, etc. a moderate charge is made to cover the mintage cost: in India a 2 p.c. seignorage is charged over and above the cost for coining silver. Paper currency consists of Notes issued by the Government, or by public banks with the sanction of the Government. These notes are "payable on demand” in metallic currency, and as long as they are regularly |