Real Estate Accounts; Treating of the Proper Classification, Construction, and Operation of Accounts for the Real Estate Business, Including Forms

Real Estate Accounts; Treating of the Proper Classification, Construction, and Operation of Accounts for the Real Estate Business, Including Forms

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This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1917 edition. Excerpt: ... balances, ignoring the fact that a payment has been made each month $11.23 2. If each payment be made on the last of the month, and interest be allowed thereon.... 11.12 3. If payments be made on the first of each month, and interest be allowed thereon 11.01 It will be seen that, by using different methods the results may vary as much as 39 cents on each payment (i.e., $11.23--$10.84), or a total of $46.80 on the principal. If real estate dealers realized more fully the existence and amount of these differences, they would undoubtedly take the necessary trouble to have accurate calculations made. As a matter of fact, under the first method, the seller does not receive the percentage which he thinks he is getting, i.e., 6% in the instance given. 'See Stubbing' "Tables of Present Value of Annuities," an English work. 138. Unearned Interest--Alternative Methods of Calculating While the method of calculating interest above outlined is correct, it is extremely inconvenient in an office where there are many contracts involving such interest calculations, and various attempts have been made to simplify matters. One plan consists in calculating the interest halfyearly on fixed dates, these dates being the same in all contracts of one class. This reduces the work of the bookkeeper, inasmuch as it brings all such interest calculations at two stated times each year instead of scattering them through every month of the year. Another plan which has been adopted with some success is to calculate the interest every six months on the balance then unpaid. This is convenient for the bookkeeper, as it enables him to take his monthly trial balance and simply calculate the interest on each amount shown thereon. An example of such a...show more

Product details

  • Paperback
  • 189 x 246 x 4mm | 168g
  • Rarebooksclub.com
  • United States
  • English
  • black & white illustrations
  • 1236838378
  • 9781236838377