PARTNERSHIP, OR COMPANY BUSINESS. 253. Partnership is the association of two or more persons in business, with an agreement to share the profits and losses. Partners are the persons associated in business. Company, or Firm, is the name of the business association. Capital, or Joint Stock, is the money or property invested in the company or firm. The Dividend is the profit or gain on the shares of the capital. 254. To find each partner's share of the profit or loss when each one's stock is employed the SAME TIME. Ex. 1. John Smith and Henry Gray enter into partnership for three years; Smith puts in $4000, and Gray $ 2000. They gain $570. What is each man's share of the gain? Ans. Smith's gain, $ 380; Gray's gain, $190. Proof, $570 Since $4000+ $2000: = $6000 is the whole stock, Smith's part of the stock is 888; and Gray's part, 2000. Then, since each man's gain must correspond to his stock, of $570, or $380, is Smith's share of the gain; and of $570, or $190, is Gray's share of the gain. : OPERATION BY PROPORTION. $6000 $4000::$570: $ 38 0, Smith's gain. 253. What is partnership? What is the association called? profit or loss? What are the persons associated called? RULE 1. Multiply the whole gain or loss by the fractions denoting each partner's part of the whole stock, and the products will be the respec tive shares of the gain or loss of each partner. Or, RULE 2. As the whole stock is to each partner's stock, so is the whole gain or loss to each partner's gain or loss. EXAMPLES FOR PRACTICE. 2. Three merchants, A, B, and C, engaged in trade. A put in $ 6000, B put in $9000, and C put in $5000. They gain $840. What is each man's share of the gain? Ans. A's gain $252, B's gain $ 378, C's gain $ 210. 3. A bankrupt owes Peter Parker $8750, James Dole $ 3610, and James Gage $7000. His effects, sold at auction, amount to $6875; of this sum $375 are to be deducted for expenses, &c. What will each receive of the dividend? Ans. Parker, $2937.7519; Dole, $1212.03; Gage, $2350.208 4. A merchant, failing in trade, owes A $500, B $386, C $988, and D $126. His effects are sold for $100. What will each man receive? Ans. A receives $ 25.00, B $ 19.30, Č 49.40, D $ 6.30. 5. A, B, and C, engaged in trade. A put in $700, B put in $300, and C put in 100 barrels of flour. They gained $90; of which sum C took $30 for his part; what will A and B receive, and what was C's flour valued per barrel? Ans. A receives $ 42, B $ 18, C's flour $5 per barrel. 255. To find each partner's share of the profit or loss, when the stock is employed UNEQUAL TIMES. Ex. 1. Josiah Brown and George Dole trade in company. Brown put in $600 for 8 months, and Dole put in $400 for 6 months. They gain $60. What is each man's share of the gain? of $60 $288, Brown's share in the partnership. = Dole's share in the partnership. $40, Brown's gain; of $ 60 = $ 20, Dole's gain. 254. The rule for finding the shares of profit or loss when the stock is employed the same time? $600 for 8 months is the same as $ 600 X 8 $4800 for 1 month, because $4800 would gain as much in 1 month as $ 600 in 8 months; and $400 for 6 months is the same as $ 400 X 6 = $ 2400 for 1 month. The question then is the same as if Brown had put in $ 4800 and Dole $2400 for 1 month each. The whole stock would then be $4800+ $2400 $7200, and Brown's share of the gain would be 4800 = of $60 $40; and Dole's share, 188 of $60 : = = $20. $4800 $2400 $7200 ་་ OPERATION BY PROPORTION. $7200: $4800::$60 $40, B's share. $7200 $2400::$60: $20, D's share. : RULE 1. Multiply each partner's stock by the time it was in trade, and consider each product a numerator, to be written over the sum of the products, as a common denominator. Then multiply the whole gain or loss by each of these fractions, and the product will be the respective shares of the gain or loss of each partner. Or, RULE 2. · Multiply each partner's stock by the time it was in trade; then, as the sum of these products is to each product, so is the whole gain or loss to each partner's gain or loss. EXAMPLES FOR PRACTICE. 2. A, B, and C trade in company. A put in $700 for 5 months; B put in $800 for 6 months; and C put in $ 500 for 10 months. They gain $399. What is each man's share of the gain? - Ans. A's gain $ 105, B's gain $144, C's gain $150. 3. Johnson, Hyde, and Tyler enter into business, under the firm of Johnson, Hyde, & Co. Johnson put in at first $1000, and at the end of 6 months $500. Hyde put in at first $800, and at the end of 4 months $ 400; but, at the end of 10 months, he withdrew $ 500. Tyler put in at first $1200, and at the end of 7 months $ 300, and at the end of 10 months $200. At the end of the year they found their net gain to be $1000. What is each man's share? Ans. Johnson's gain $ 348.02331, Hyde's $ 273.78, Tyler's $378.197 4. George Morse hired of William Hale, of Haverhill, a horse and chaise for a ride to Newburyport, for $ 3.00, with the privilege of one person's having a seat with him. Having rode 4 255. What are the rules for finding the shares of profit or loss when the stock is employed for unequal times? Why do you multiply each man's stock by the time it was in trade? miles, he took in John Jones, and carried him to Newburyport, and brought him back to the place from which he took him. What share of the expense should each pay, the distance from Haverhill to Newburyport being 15 miles? Ans. Morse pays $1.90, Jones pays $ 1.10. 5. J. Jones and L. Cotton enter into partnership for 1 year. January 1, Jones put in $1000, but Cotton did not put in any until the first of April. What did he then put in, to have an equal share with Jones at the end of the year? Ans. 1333.33. 6. S, C, and D engage in partnership, with a capital of $ 4700. S's stock was in trade 8 months, and his share of the profits was $96; C's stock was in the firm 6 months, and his share of the gain was $90; D's stock was in the firm 4 months, and his gain was $80. Required the amount of stock which each had in the firm. S's stock $1200. C's stock $1500. Ans. D's stock $2000. 7. A, B, and C engage in trade. A put in $300 for 7 months, B put in $500 for 8 months, and C put in $200 for 12 months; they gain $85; what share of the gain does each receive? Ans. A $21, B $ 40, and C $24. 8. A and B engage in trade, with $500. A put in his stock for 5 months, and B put in his for 4 months. A gained $10, and B gained $ 12; what sum did each put in? Ans. A $ 200, B $ 300. 9. A and B trade in company. A put in $3000, and at the end of 6 months put in $2000 more; B put in $ 6000, and at the end of 8 months took out $3000; they trade one year, and gain $1080; what is each man's share of the gain? Ans. A's share is $ 480, B's $ 600. 10. Four men hired a pasture for $50. A put in 5 horses for 4 weeks; B put in 6 horses for 8 weeks; C put in 12 oxen for 5 weeks, calling 3 oxen equal to 2 horses; and D put in 3 horses for 14 weeks. How much ought each man to pay? Ans. A $6.663, B $ 16.00, C $ 13.334, and D $14.00.11. A, B, and C contract to build a piece of railroad for $7500. A employs 30 men 50 days; B employs 50 men 36 days; and C employs 48 men and 10 horses 45 days, each horse to be reckoned equal to one man, and he is also to have $112.50 for overseeing the work. How much is each man to receive? Ans. A receives $ 1875; B, $ 2250; C, $ 3375. GOVERNMENT SECURITIES. 256. Bonds are obligations securing the payment of a certain sum of money at a specified time. The principal bonds of the United States are: 6's of '81, payable in 1881, bearing interest at 5's of '81, payable in 1881, bearing interest at 5 44's of '86, payable in 1886, bearing interest at 4 4's of 1901 payable in 1901, bearing interest at per cent. in gold. per cent. in gold. per cent. in gold. per cent. in gold. 5-20's are bonds redeemable after 5 years, and payable after 20 years. They bear interest at 6 per cent. in gold. 10-40's are bonds redeemable after 10 years, and payable in 40 years. They bear interest at 5 per cent. in gold. Treasury Notes are government notes payable on demand, without interest, or at a specified time with interest. Government Securities consist of Government bonds and Treasury notes. They are at par, or at above par when quoted at quoted at less than 100. 113 per cent. of its face, or at 13 per cent. premium. A Coupon is an interest ticket attached to a bond. their face value, when quoted at 100; more than 100; and below par when Thus, a security quoted at 113 is at EXERCISES. 1. How much must be paid for $8000, U. S. 6's of '81, at 114, and brokerage at per cent. OPERATION. 114+114; $80.00 X 1.14 Ans. $9130. $9130.00. 2. What amount of U. S. 6's of '81, at 114 and brokerage at per cent. can be bought for $9130? Ans. $8000. 3. At what rate must U. S. 5's be bought to yield 4 per cent. on the investment? Ans. 111. 4. How much must be invested in U. S. 44's at 100, to yield a quarterly income of $225? Ans. $20,000. 256. What are bonds? Treasury notes? Government securities? |