invoice. This is not always the case; very frequently it is included in the price. A merchant would probably include it in the price; an agent would probably show it separately. The "freight" in this example includes carriage from Manchester.

Forwarded to Messrs. JOHN PENLEY & SON, London, for shipment per

MANCHESTER, 28th August, 1898.
Dr.

Messrs. Ratcliffe, Thomson & Co., Montreal,

To ARTHUR COLLIER & CO.

For 1 Case Goods forwarded for their account and risk

through Messrs. W. Peterson & Co., Liverpool,

Invoice of 25 Cases Provisions, shipped at London per steamer "Malay" for Singapore, by order of Messrs. Brown, Green & Co., on account and risk of Messrs. R. Pilley & Co., Singapore.

66

Invoice No. 4.-" Loco."

Invoice of 5 Bales Grey Dhooties shipped by the undersigned per Barrister," Liverpool, for Calcutta, by order and for account and risk of Messrs. Bunder, Abbas & Co., Calcutta.

Order No. 2,000.

Indent No. 1,500.

B/L dated January 28th, 1898.

Insurance effected here.

F.o.b. means "free on board," and, as already explained, includes all charges up to and including putting the goods on board the vessel. The charges are never specified in an f.o.b. invoice, they are always included in the price, which is given as "f.o.b., London," "f.o.b., Liverpool," "f.o.b., Glasgow," &c.

Invoice No. 5 is supposed to be an invoice rendered to a London house in reference to the order quoted on page 39. The packing and forwarding charges and the commission are included in the price.

Invoice No. 6 shows how "Loco" Invoice No. 4 (on the preceding page) would appear if made out on f.o.b. terms. The following calculation shows how the price is arrived at :—

£138 10s. 4d. or 33,244d. 2,000 ls. 4ğd. nearly.

Invoice No. 5.-F.0.B.

Invoice of 4 Cases Worsted Tweeds forwarded to Liverpool by the undersigned for shipment per steamer "Devonshire" for Bombay, by order and for account of Messrs. Wm. Thurston & Co., London.

Invoice No. 6.-F.O.B.

Invoice of 5 Bales Grey Dhooties forwarded by the undersigned per rail to Liverpool for shipment per steamer "Barrister" for Calcutta, on account of Messrs. Tom Brown & Co., London.

This is simply an f.o.b. invoice with the addition of the freight on the goods from the port of shipment to the port of destination (included in the price, of course). Invoices on these terms are very common in the import trade, but they are rarely met with in the export trade.

If the goods mentioned in the f.o.b. invoice on the preceding page were sold on c. & f. terms, the invoice would be made out as follows: