Subject: Financial Accounts

Topic: Average Due Date By: Questionscastle Academic Team Document Code: CA/IPCC/ACC/00023
Q 1. From the following data calculate average due date: Date of Bill Term 10th Aug 1994 3 months 23rd October 1994 60 days 4th December 1994 2 months 14th January 1995 60 days 2 months 8th March 1995 Q 2. The following data is given to you: Date of Bill 10th Aug 1996 23rd October 1996 4th December 1996 14th Jan 1997 8th Mar 1997 Calculate Average Due Date.

Amount ` 6,000 5,000 4,000 2,000 3,000

Term 3 Months 60 days 2 months 60 days 2 months

Amount ` 6,000 5,000 4,000 2,000 3,000

Q 3. Hari owes Ram `2,000 on 1st April 1996. From 1st April 1996 to 30th June 1996 the following further transactions took place between them: April 10th Hari buys goods from ram for `5,000 May 16th Hari receives a cash loan of `10,000 from Ram June 9 Ram sold goods to Hari for `3,000 Hari pays the whole amount, together with interest @15% p.a. to Ram on 30th June 1996. Calculate interest payable on 30th June 1996 by average due date method. Q 4. X lent `40,000 on January 1st 1990 to Y. The amount is repayable in five semiannual installments starting from 1st Jan 1991. Calculate Average Due date at 11% p.a. Q 5. Mr. Ed and Mr. Eddy had the following mutual dealings and they wish to settle their account on average due date: Purchase by Mr. Ed from Mr. Eddy: 6th Jan 1988 `6,000 2nd Feb 1988 `2,800 31st Mar 1988 `2,000 Sales by Mr. Ed to Mr. Eddy: 6th Jan 1988 9th Mar 1988 20th Mar 1988 `6,600 `2,400 `500

Find the average due date for settlement of their account. Q 6. Jatin sold goods to Lalit as under: ` 5,000 5th Jan 1998 15th Feb 1998 2,000 10th Mar 1998 3,000 While Lalit sold goods to Jatin as under:

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10th Jan 1998 25th Feb 1998 31st Mar 1998

4,000 2,500 1,000

Jatin gives two month credit but Lalit allows one month credit. Both the parties want to make payments of the amounts due on a date that both of them do not incur any loss. What will be the date and also ascertain the amount? If Lalit wants to settle the account with Jatin on 30th June together with interest at 6% p.a. Ascertain the amount he is required to pay. Q 7. `60,000 were lent on 1st Jan 1991 and are to be repaid as under: `5,500 on 1st Jan 1992 `9,500 on 1st Jan 1994 `20,000 on 1st Jan 1995 `7,000 on 1st Jan 1997 `18,000 on 1st Jan 1999 Calculate average due date and interest at 10% p.a. Q 8. E owes to F the following amounts: `5,000 due on 10th Mar 1999 `18,000 due on 2nd Apr 1999 `60,000 due on 30th Apr 1999 `2,000 due on 10th June 1999 He desires to make full payment on 30th June 1999 with interest at 10% p.a. from the average due date. Find out average due date and interest. Q 9. Anik has drawn the following bills on Ramnik which are duly accepted by Ramnik: Date of Bill Term Amount ` 1st Mar 1997 4 Months 4,000 16th Mar 1997 3 months 5,000 7th Apr 1997 5 months 6,000 17th May 1997 3 months 5,000 Ramnik wants to clear all the bills on a single day. Find out the day on which he should make the payment. Interest is charged at 18% p.a. and Ramnik wants to save `150 by way of interest. Find out the date on which he should pay in order to save `150 of interest. Q 10.A owes to B the following amounts: Amount ` Due Date 700 15th Jan 1992 1,200 27th Feb 1992 900 16th Mar 1992 1,100 20th Apr 1992 A desire to pay total amount on one day. When should he pay?

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