In this example, the amount of 100l. for 3 years, at 4 per cent. is made the first number in the rule of three direct, the interest for the 100l. for that time, at that rate per cent. is the fecond number; and the given fum, whofe discount is required, is the third number; and the fourth number is the anfwer.-681, 45, 10td.

Difcount by Decimals.

Rule. As the amount of 17. for the given time, at the given rate, is to 1. fo is the intereft of the debt for the fame time to the discount required.

Example 1. What is the difcount of 5731. 15s, due 3 years hence, at 41 per cent, per annum?

Questions of this nature are refolved by the rule of prac tice: thus, in the foregoing example, I take the principal fum of 2220/. 10s. for the price of the Bank stock, at 100%. per cent. and for the other 5 per cent. in the price of the stocks, I take a twentieth part of the above sum 1117. os. 6d. and for the remaining per cent. I take a tenth part of the 57. line, which is 117. 28. old.; and these three lines added together is the answer.

Qu. 2. What is the purchase of 1975% 10s. India ftock, at 1137 per cent.?—Anf. 2249l. 125.

2. 3. What is the purchase of 16334. 45. Bank annuities, at 894 per cent. ?-Ans. 1459%. 135. 5‡d.

2. 4. What is the purchase of 4109/. 125. in the 3 per cent. confolidated Bank annuities, at 55 per cent. ?—Anf.

22651. 8s. 34d.

CHAP. VI.

OF MERCHANTS ACCOUNTS.

SECT. I.

OF BOOK-KEEPING THE ITALIAN WAY; OR, BY
DOUBLE ENTRY.

THERE are several books ufed by mercantile men, of which the principal are the waste-book, the journal, and the ledger. These books are generally ufed by all men of

bufinefs;

1

bufinefs; I fhall therefore give an example of the ufe of each of them.

Of the Wafte-Book.

This book, by fome called the day-book, is used to note down whatever occurs in the way of trade, as buying, felling, paying, receiving, delivering, &c. &c. without omitting any one thing.

This book has one marginal line on the left hand, and three lines for pounds, fhillings, and pence, on the right hand; the day of the month and the date of the year are inferted in the middle of the page.

Of the Journal.

Every thing which is written in the wafte-book must be tranfcribed into the journal in the proper mercantile terms, and in a fairer hand; and every article is to be fet down according to the order of time, without any intermiffion, to make the book of more validity in cafe of any controversy or difpute.

In this book every article bought or fold is diftinguished by the name of debtor or creditor, and to this book recourse must be had for the particulars of any account.

In the journal the day of the month is alfo placed in the middle of the page; it is ruled with three lines, for pounds, fhillings, and pence, as the waste-book is, and one, and fometimes two marginal lines on the left hand, to refer to the ledger.

Of the Ledger.

Every article is pofted into this book from the journal, but in short, in one line; every left-hand page of this book is called the debtor page, and each right-hand page the creditor.

4

creditor. Every debtor page must have a creditor page of the fame number; thus, the articles or perfons which are called the debtors (in the mercantile phrafe) muft be entered on a page of the fame number with thofe called the creditors.

The day of the month, in this book, is fet in a narrow column on the left hand at the top of each page is the name, the place of refidence, and the year of our Lord.

I fhall give a few examples of the use of each of these books; but it must first be observed, that in the wafte book every article is written down in ordinary plain language, and entering the fame articles into the journal is nothing more than the fetting them down in the mercantile phrafe, diftinguishing each perfon or article by the name of debtor or creditor, for which the following rule must be strictly obferved:

2: All things received, or the receiver, are debtors to the delivered, or the deliverer..

1 T...*

Examples of the Ufe of the Waste-Book.

April 2d, 1808.

Bought of Henry Smith, of Cheapfide, 100 yards of Irish linen, at 2s. 6d. per yard, "to be paid in 3 months

Sold to John Jones, 20 yards of broad cloth, at 18s. per yard, to be paid in 6 months

Bought of William Williams, 1 cwt.

of fugar, at 14 18s. per cwt.

Bought of John Edwards, 60lb. of

tea, at 5s. per lb.

Journal Entry.

April 2d, 1808.

18

12 10

Irish linen debtor to Henry Smith, 127. 1os. for 100 yards, at 2s. 6d. per yard, to be paid in 3 months John Jones debtor to broad cloth for 20 yards, at 18. per yard, to pay in 6 months: 18 00

Lisbon

Lisbon fugar debtor to William Williams for

Icwt. at 11. 183. per civt.

Green tea debtor to John Edwards for 6olb.
at s. per lb.

s.d.

118

In the first of thefe examples I make Irish linen the debtor, as that is the article, received, and Henry Smith creditor, as he is the deliverer.

In the fecond example John Jones is the debtor, as he is the receiver, and broad cloth the creditor. The fame may be obferved in all the other examples which follow.

Thus an experienced perfon may keep a journal without a wafte-book, as they both import the fame thing.

I fhall, however, give a few more examples of each: and firft the form of an inventory, as that is always taken down.

Wafte-Book.

London, January 1ft, 1808.

An inventory of all the money, goods, and debts, belonging to me, A. B. of London, merchanti viz.

Received from Benjamin Hughes, in Jamaica, 50 puncheons of rum, at 187. per puncheon, to

pay in 6 months

VOL. I.

gool clo January