By Harold Ward (auth.)

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Extra resources for Business Arithmetic

Sample text

Profits are then divided in proportion to capital subscribed. After 3 months B withdrew£I000 of his capital, and 3 months later A withdrew£l000 of his, but at the same time C added £ 1000. What amounts are due to each at the end of the year if the profits were £48,000? Rembering the rule of one month (previous example) we have: A £5000 for 6 months = £30000 = £24000 £4000 " 6 £54000 for 1 month B £ 4000 for 3 months £3000 " 9 C £3000 " 6 £4000 " 6 12000 27000 -39000 = 18000 = 24000 42000 " " The ratios of capital on a monthly basis are:(OOO's) 54: 39: 42 54+39+42= 135 (OOO's) Amount to be divided is£48000-£3000 =£45000 A's share is ~ of£-45(OOO) =£18000 3 B's share is ~ of£-45(000) =£ 13000 45 " C's share · 42 IS - - +35-3 of£-4-5(OOO) =£14000+([,3000 salary) -- Check £45000 Progress Test 5C 1 A bonus of£65 is divided between three men in the ratio of their weekly wages, which are£32,£43 and£55.

On no account should the two discounts be added together and deducted as a single amount. This will give an incorrect answer. g. £100 less 20 per cent less 5 per cent 20 per cent of£l00 =£20; £100-£20 =£80; 5 per cent of£80 =£4; £80-£4 =£76 net. This is not the same as adding the two together: 20 per cent + 5 per cent = 25 per cent; £ 100 less 25 per cent =£ 100 -£25 =£75. Example 10 A wholesaler allows a retailer 30 per cent trade discount and 5 per cent cash discount. Find the cash price of an article which is priced in the wholesaler's catalogue at £80.

Sometimes the percentage varies according to the time allowed. g. 5 per cent if paid within 7 days. 2! per cent if paid within 14 days. Because of present day high interest charges for borrowing, there is a trend 54 towards making an extra charge if payment is delayed beyond, say, a month. Net Price is a price after discount has been deducted, or a price on which no deductions are allowed. Note. When both discounts are allowed, they must be calculated separately, the trade discount first, followed by the cash discount.