{"id":10805,"date":"2024-03-04T01:00:07","date_gmt":"2024-03-03T19:30:07","guid":{"rendered":"https:\/\/gstguntur.com\/?p=10805"},"modified":"2024-03-11T17:57:32","modified_gmt":"2024-03-11T12:27:32","slug":"average-due-date-ca-foundation-accounts-study-material","status":"publish","type":"post","link":"https:\/\/gstguntur.com\/average-due-date-ca-foundation-accounts-study-material\/","title":{"rendered":"Average Due Date \u2013 CA Foundation Accounts Study Material"},"content":{"rendered":"<p>Average Due Date \u2013 <a href=\"https:\/\/gstguntur.com\/ca-foundation-accounts-study-material\/\">CA Foundation Accounts Study Material<\/a>\u00a0is designed strictly as per the latest syllabus and exam pattern.<\/p>\n<h2>Average Due Date \u2013 CA Foundation Accounts Study Material<\/h2>\n<p>Question 1.<br \/>\nWhat is average due date\u20b9 List out various instances when average due date can be used.<br \/>\nAnswer:<br \/>\nAverage due date and various instances when average due date can be used:<br \/>\nAverage due date is the weighted average date of different due dates relating to various transaction (debit and\/or credit) due between the same parties. Average due date can be used anywhere, when items of same nature and between same parties are to be represented by a single date for convenience of interest calculation &amp;\/or settlement.<\/p>\n<p>Example:<\/p>\n<ul>\n<li>Payments due on different date by a debtor to a creditor.<\/li>\n<li>Receivable and payables both due between parties.<\/li>\n<li>Bills receivable and Bills payables falling due on different dates to be settled by a single new bill.<\/li>\n<li>Interest on drawings made on different date.<\/li>\n<li>Loans repayable in equal periodic instalment.<\/li>\n<li>Loans distributed in equal periodic instalment etc.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/10\/GST-Guntur.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material\" width=\"123\" height=\"13\" \/><\/p>\n<p>Question 2.<br \/>\nFind out Average Due Date from the following:<br \/>\n\u20b9 6,000\/- due on 05\/02\/96,<br \/>\n\u20b9 3,200\/- due on 07\/04\/96,<br \/>\n\u20b9 5,700\/- due on 15\/07\/96,<br \/>\n\u20b9 7,000\/- due on<br \/>\nSolution:<br \/>\nLet the base date be 5.2.96<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10808\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-1.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material 1\" width=\"608\" height=\"408\" srcset=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-1.png 608w, https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-1-300x201.png 300w\" sizes=\"(max-width: 608px) 100vw, 608px\" \/><br \/>\nHow to check leap year: 1996 \u00f7 4 = 499<br \/>\n\u2192 It is clear division that means, 1996 is a leap year comprising of 366 days with February of 29 days.<\/p>\n<p>Question 3.<br \/>\nA trader having accepted bills falling due on different dates now desires to have his bills cancelled &amp; to accept a new bill for the whole amount payable on the average due date. Calculate Average. Due date.<\/p>\n<table border=\"2\">\n<tbody>\n<tr>\n<td>Date of Bill<\/td>\n<td>Date of Acceptance<\/td>\n<td>Amount<\/td>\n<td>Term\/usance of bill<\/td>\n<\/tr>\n<tr>\n<td>01\/03\/99<\/td>\n<td>03\/03\/99<\/td>\n<td>400.00<\/td>\n<td>2 months from date bill<\/td>\n<\/tr>\n<tr>\n<td>06\/03\/99<\/td>\n<td>10\/03\/99<\/td>\n<td>200.00<\/td>\n<td>3 months from date of Acceptance.<\/td>\n<\/tr>\n<tr>\n<td>05\/04\/99<\/td>\n<td>10\/04\/99<\/td>\n<td>200.00<\/td>\n<td>2 months after sight<\/td>\n<\/tr>\n<tr>\n<td>15\/04\/99<\/td>\n<td>20\/04\/99<\/td>\n<td>325.00<\/td>\n<td>1 months from date of signing.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Solution:<br \/>\nLet the base date be 4.5.99<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10809\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-2.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material 2\" width=\"609\" height=\"389\" srcset=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-2.png 609w, https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-2-300x192.png 300w\" sizes=\"(max-width: 609px) 100vw, 609px\" \/><\/p>\n<p>Question 4.<br \/>\nTwo traders X &amp; Y buy goods from one another each allowing the other 1 months credit. At the end of 3 months the details are as follows; calculate the date upon which the balance should be paid so that no interest is due to either X or Y.<br \/>\nGoods sold by X to Y \u2192 (i) 18\/04\/96 \u20b9 60, (ii) 15\/05\/96 \u20b9 70, iii) 16\/06\/96 \u20b9 80.<br \/>\nGoods sold by Y to X \u2192 (i) 23\/03\/96 \u20b9 52, (ii) 24\/05\/96 \u20b9 50.<br \/>\nSolution:<br \/>\nLet base date be 23.4.96 (student can take any other date as base date, the ultimate answer will be same)<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10810\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-3.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material 3\" width=\"610\" height=\"265\" srcset=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-3.png 610w, https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-3-300x130.png 300w\" sizes=\"(max-width: 610px) 100vw, 610px\" \/><br \/>\nTherefore,<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10811\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-4.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material 4\" width=\"599\" height=\"97\" srcset=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-4.png 599w, https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-4-300x49.png 300w\" sizes=\"(max-width: 599px) 100vw, 599px\" \/><br \/>\nTherefore 14th July is the average due date.<\/p>\n<p>Note:<br \/>\nDue date of each transaction is calculated by adding credit period of one month. These are not bills of exchange\/promissory notes, hence days of grace will not be added.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/10\/GST-Guntur.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material\" width=\"123\" height=\"13\" \/><\/p>\n<p>Question 5.<br \/>\n\u20b9 10,000 lent (advanced) by Das Bros, to Kumar &amp; Sons, on 1st Jan. 2009, is repayable in 5 equal annual instalments commencing on 1st January 2010. Find the Average Due Date &amp; Calculate Interest at 5% p.a. which Das Bros, will recover from Kumar &amp; Sons.<br \/>\nSolution:<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10812\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-5.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material 5\" width=\"598\" height=\"139\" srcset=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-5.png 598w, https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-5-300x70.png 300w\" sizes=\"(max-width: 598px) 100vw, 598px\" \/><br \/>\nCross verification of formula: Base date 1.1.2009 is taken to prove above formula.<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10813\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-6.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material 6\" width=\"608\" height=\"303\" srcset=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-6.png 608w, https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-6-300x150.png 300w\" sizes=\"(max-width: 608px) 100vw, 608px\" \/><\/p>\n<p>Question 6.<br \/>\nAmit purchased goods from Sumit, the average due date for payment in cash is 10.08.2011 and the total amount due is \u20b9 50,000.<br \/>\nHow much amount should be paid by Amit to Sumit if total payment is made on following dates &amp; interest is to be considered at the rate of 12% p.a. i) on average due date ii) 25<sup>th<\/sup> August; iii) 30<sup>th<\/sup> July.<br \/>\nSolution:<br \/>\nAmit to pay to Sumit following amounts:<br \/>\n(i) If the full amount \u20b9 50,000 is paid on average due date i.e. 10<sup>th<\/sup> August then there is neither delay nor an early payment, hence no interest\/rebate. Amount to be paid is \u20b9 50,000.<\/p>\n<p>(ii) If total amount is paid on 25th August then there is delay of 15 days, hence interest will be charged.<br \/>\nInterest = 50,000 x \\(\\frac { 12 }{ 100 }\\) x \\(\\frac { 15 }{ 365 }\\) = \u20b9 246.58<br \/>\nTotal payment = 50,000 + 246.58 = \u20b9 50,246.58<\/p>\n<p>(iii) If that payment is made on 30th July then it is an early payment by 11 days.<br \/>\nHence rebate will be granted Rebate = 50,000 x \\(\\frac { 12 }{ 100 }\\) x \\(\\frac { 11 }{ 366 }\\) = \u20b9 180.82<br \/>\nTotal amount = 50,000 &#8211; 180.82 = \u20b9 49,819.18<\/p>\n<p>Question 7.<br \/>\nA partner has withdrawn the following sums of money during the half-year ended 30th June, 2011:<\/p>\n<table border=\"2\">\n<tbody>\n<tr>\n<td><\/td>\n<td>\u20b9<\/td>\n<\/tr>\n<tr>\n<td>January 15<\/td>\n<td>300<\/td>\n<\/tr>\n<tr>\n<td>February, 28<\/td>\n<td>250<\/td>\n<\/tr>\n<tr>\n<td>March, 10<\/td>\n<td>150<\/td>\n<\/tr>\n<tr>\n<td>March, 26<\/td>\n<td>200<\/td>\n<\/tr>\n<tr>\n<td>April, 20<\/td>\n<td>400<\/td>\n<\/tr>\n<tr>\n<td>May, 16<\/td>\n<td>300<\/td>\n<\/tr>\n<tr>\n<td>June, 18<\/td>\n<td>500<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Interest is to be charged at 8% per annum. Find out the average due date and calculate the amount of interest to be debited to the partner.<br \/>\nSolution:<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10814\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-7.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material 7\" width=\"610\" height=\"241\" srcset=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-7.png 610w, https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-7-300x119.png 300w\" sizes=\"(max-width: 610px) 100vw, 610px\" \/><br \/>\nAverage due date = 15.1.2011 + (1,84,400 \u00f7 2,100)<br \/>\n= 15.1.2011 + 88 days = 13th April 2011<br \/>\nAverage due date is the representative date of all the due dates. That means we can say that drawing \u20b9 2100 is made on 13.4.2011.<br \/>\nInterest on drawings is calculated from the date of drawing to the end of period.<br \/>\n\u2234 Here interest will be calculated from 13.4.2011 to 30.6.2011 = 78 days<br \/>\n\u2234 Interest = 2100 x \\(\\frac { 8 }{ 100 }\\) x \\(\\frac { 78 }{ 365 }\\) = \u20b9 35.90; say \u20b9 36\/-<\/p>\n<p>Note:<br \/>\nEven if we calculate individually on each drawing amount, from the date of drawing to 30.6.1994, the total interest will be \u20b9 35.90 only.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/10\/GST-Guntur.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material\" width=\"123\" height=\"13\" \/><\/p>\n<p>Question 8.<br \/>\n\u20b9 50,000 lent (advanced) by Ambani Bros, to Tata Sons, on 1st Jan. 2011, is repayable in 5 equal annual instalments commencing on 1st January 2012. Find the Average Due Date &amp; Calculate Interest payable at 15% p.a.<br \/>\nSolution:<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10815\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-8.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material 8\" width=\"558\" height=\"51\" srcset=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-8.png 558w, https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-8-300x27.png 300w\" sizes=\"(max-width: 558px) 100vw, 558px\" \/><br \/>\nAverage due date = 1.1.2011 + \\(\\frac { 1+2+3+4+5 }{ 5 }\\)<br \/>\n= 1.1.2011 + 3 years<br \/>\n= 1.1.2014<br \/>\nInterest = 50,000 x \\(\\frac { 15 }{ 100 }\\) x 3 (1.1.2011 to 1.1.2014)<br \/>\n= 22,500.<br \/>\nThis is simple interest.<\/p>\n<p>Question 9.<br \/>\nMr. A lends \u20b9 25,000 to Mr. B on 1st Jan., 2000. Calculate the average due date and interest, if interest @ 1896 p.a. to be charged by A in each of the following alternative cases:<br \/>\na. If the amount is repayable in 5 equal annual instalments commencing from 1st January, 2001.<br \/>\nb. If the amount is repayable in 5 half yearly equal instalments commencing from 1st January, 2001.<br \/>\nc. If the amount is repayable in three equal instalments at an interval of two years commencing from 30th June, 2002.<br \/>\nd. If the amount is repayable in 5 equal instalments as under:1(01.01.2001 ); 11(1.7.2001); 111(1.7.2002); IV(01.01.2003); V (01.01.2004)<br \/>\nSolution:<br \/>\nPeriod is in years or months, from the date of lending (i.e. 1.1.2000) to the due date of instalment.<br \/>\nCase (a):<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10816\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-9.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material 9\" width=\"514\" height=\"55\" srcset=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-9.png 514w, https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-9-300x32.png 300w\" sizes=\"(max-width: 514px) 100vw, 514px\" \/><br \/>\n= 01.01.2000 + \\(\\frac { 1+2+3+4+5 }{ 5 }\\)<br \/>\n= 01.01.2000 + 3 years = 1<sup>st<\/sup> Jan., 2003<br \/>\n= 01.01.2000 + 24 Months = 1<sup>st<\/sup> Jan., 2002<br \/>\nInterest = \u20b9 25,000 x 3 x \\(\\frac { 18 }{ 100 }\\)<br \/>\n= \u20b9 13,500<\/p>\n<p>Case (b):<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10817\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-10.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material 10\" width=\"519\" height=\"50\" srcset=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-10.png 519w, https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-10-300x29.png 300w\" sizes=\"(max-width: 519px) 100vw, 519px\" \/><br \/>\n= 01.01.2000 + \\(\\frac { 12+18+24+30+36 }{ 5 }\\)<br \/>\n= 01.01.2000 + \\(\\frac { 120 }{ 5 }\\) months<br \/>\n= 01.01.2000 + 24 Months = 1<sup>st<\/sup> Jan., 2002<br \/>\nInterest = \u20b9 25,000 x \\(\\frac { 24 }{ 12 }\\) x \\(\\frac { 18 }{ 100 }\\)<br \/>\n= \u20b9 9,000<\/p>\n<p>Case (c):<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10816\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-9.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material 9\" width=\"514\" height=\"55\" srcset=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-9.png 514w, https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-9-300x32.png 300w\" sizes=\"(max-width: 514px) 100vw, 514px\" \/><br \/>\n= 01.01.2000 + \\(\\frac { 2.5+4.5+6.5 }{ 3 }\\)<br \/>\n= 01.01.2000 + 4.5 years<br \/>\n= 1<sup>st<\/sup> July, 2004<br \/>\nInterest = \u20b9 25,000 x 4.5 x \\(\\frac { 18 }{ 100 }\\) = \u20b9 20,250<\/p>\n<p>Case (d):<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10817\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-10.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material 10\" width=\"519\" height=\"50\" srcset=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-10.png 519w, https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-10-300x29.png 300w\" sizes=\"(max-width: 519px) 100vw, 519px\" \/><br \/>\n= 01.01.2000 + \\(\\frac { 12+18+30+36+48 }{ 5 }\\)<\/p>\n<p>= 01.01.2000 + 28.8 months<br \/>\n(28.8 month means 28 month complete and .8 portion of 29<sup>th<\/sup> month i.e. 31 x 8 = 25 days)<br \/>\n= 26<sup>th<\/sup> May, 2002<br \/>\nInterest = \u20b9 25,000 x \\(\\frac { 28.8 }{ 12 }\\) x \\(\\frac { 18 }{ 100 }\\) = \u20b9 10,800<\/p>\n<p>Question 10.<br \/>\nHari owes Ram \u20b9 2,000 on 1st April, 1996. From 1st April, 1996 to 30th June, 1996 the following further transactions took place between Hari and Ram:<br \/>\nApril 10 Hari buys goods from Ram for \u20b9 5,000.<br \/>\nMay 16 Hari receives cash loan of \u20b9 10,000 from Ram.<br \/>\nJune 9 Hari buys goods from Ram for \u20b9 3,000.<br \/>\nHari pays the whole amount, together with interest @15% per annum, to Ram on 30th June, 1996. Calculate the interest payable on 30th June, 1996 by the average due date method.<br \/>\nSolution:<br \/>\nIn all transactions, Hari has to pay to Ram.<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10818\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-11.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material 11\" width=\"609\" height=\"292\" srcset=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-11.png 609w, https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-11-300x144.png 300w\" sizes=\"(max-width: 609px) 100vw, 609px\" \/><br \/>\nIf total amount is paid on 6th May i.e. on Average due date then there is neither delay nor an early payment, hence, no interest\/rebate to be charged\/given.<br \/>\nAs amount is paid on 30th June that means there is delay of 55 days (6.5.96 to 30.6.96) in payment, hence interest will be charged.<br \/>\nInterest charged = 20,000 x \\(\\frac { 15 }{ 100 }\\) x \\(\\frac { 55 }{ 366 }\\) = \u20b9 451<\/p>\n<p>Working Notes:<br \/>\n1. Working of days from base date to due date:<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10819\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-12.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material 12\" width=\"609\" height=\"129\" srcset=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-12.png 609w, https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-12-300x64.png 300w\" sizes=\"(max-width: 609px) 100vw, 609px\" \/><\/p>\n<p>2.1st item of 1.4.96 is the Opening balance i.e. it is the balance of 31.3.96 hence instead of \u20180\u2019 days (-) 1 day can be taken.<\/p>\n<p>3. Assuming calendar year 1996 (leap year) 366 days taken. Alternatively if you take 1.4.96 to 31.3.97 (non-leap year) then take 365 days.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/10\/GST-Guntur.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material\" width=\"123\" height=\"13\" \/><\/p>\n<p>Question 11.<br \/>\nMr. Black accepted the following bills drawn by Mr. White:<\/p>\n<table border=\"2\">\n<tbody>\n<tr>\n<td>Date of Bill<\/td>\n<td>Period<\/td>\n<td>Amount (\u20b9)<\/td>\n<\/tr>\n<tr>\n<td>09-03-2010<br \/>\n16-03-2010<br \/>\n07-04-2010<br \/>\n18-05-2010<\/td>\n<td>4 months<br \/>\n3 months<br \/>\n5 months<br \/>\n3 months<\/td>\n<td>4,000<br \/>\n5,000<br \/>\n6,000<br \/>\n5,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>He wants to pay all the bills on a single date. Interest chargeable is @ 18% p.a. and Mr. Black wants to save \u20b9 150 on account of interest payment. Find out the date on which he has to effect the payment to save interest of \u20b9 150. Base date to be taken shall be the earliest due date.<br \/>\nSolution:<br \/>\nCalculation of Due date:<br \/>\n9 &#8211; 03 &#8211; 2010 + 4 months + 3 days \u2192 12-07-2010<br \/>\n16 &#8211; 03 &#8211; 2010 + 3 months + 3 days \u2192 19-06-2010<br \/>\n07 &#8211; 04 &#8211; 2010 + 5 months + 3 days \u2192 10-09-2010<br \/>\n18 &#8211; 05 &#8211; 2010 + 3 months + 3 days \u2192 21 -08-2010<br \/>\nLet Base date be 19.06.2010<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10820\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-13.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material 13\" width=\"609\" height=\"372\" srcset=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-13.png 609w, https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-13-300x183.png 300w\" sizes=\"(max-width: 609px) 100vw, 609px\" \/><br \/>\nIf the full amount \u20b9 20,000 is paid on average due date Le. 3rd August then there is neither delay nor an early payment.<\/p>\n<p>If Mr. Black wants to save \u20b9 150 on account of interest payment, he should make early payment as follows:<br \/>\nInterest = 20,000 x 18% = 3,600 p.a.<br \/>\n\u2234 Interest = \\(\\frac { 3,600 }{ 12 }\\) = 300 p.m.<br \/>\n\u20b9 150 = \\(\\frac { 1 }{ 2 }\\) month (15 days) interest<br \/>\nHence, Mr. black should pay all bills amounting \u20b9 20,000 net of rebate \u20b9 150 on 19-07-2010.<br \/>\nor 150 = 20,000 x 18% x \\(\\frac { X }{ 365 }\\) by solving it we get X = 15.20 days i.e. say 15 days.<\/p>\n<p>Question 12.<br \/>\n&#8216;R&#8217; had the following bills receivable and bills payable against \u2018S\u2019. Calculate average due date when the payment can be made or received without any loss or gain of interest to either party.<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10821\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-14.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material 14\" width=\"624\" height=\"201\" srcset=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-14.png 624w, https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-14-300x97.png 300w\" sizes=\"(max-width: 624px) 100vw, 624px\" \/><br \/>\nHoliday intervening in the period 15th August, 2008,16th August, 2008 and 6th September, 2008<br \/>\nSolution:<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10822\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-15.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material 15\" width=\"609\" height=\"197\" srcset=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-15.png 609w, https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-15-300x97.png 300w\" sizes=\"(max-width: 609px) 100vw, 609px\" \/><br \/>\nBills Payable<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10823\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-16.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material 16\" width=\"609\" height=\"192\" srcset=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-16.png 609w, https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-16-300x95.png 300w\" sizes=\"(max-width: 609px) 100vw, 609px\" \/><br \/>\nDifference of Products = \u20b9 20,61,000 &#8211; \u20b9 13,64,000 = \u20b9 6,97,000<br \/>\nDifference of Amount = \u20b9 46,500 &#8211; \u20b9 43,000 = \u20b9 3,500 receivable<br \/>\nAverage Due Date = Base Date + \\(\\frac { Difference of Products }{ Difference of Amount}\\)<br \/>\nJuly 12 + \\(\\frac { 6,97,000 }{ 3,500 }\\)<br \/>\n= July 12 + 199.14 or 199 days<br \/>\n= 27th January, 2009<\/p>\n<p>Note:<br \/>\n16th August &amp; 6th September are not clarified whether public holiday or emergency holiday, hence we have taken all as public holiday and hence due date is taken as preceding working day.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/10\/GST-Guntur.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material\" width=\"123\" height=\"13\" \/><\/p>\n<p>Question 13.<br \/>\nA and B are partners in a firm and share profits and losses equally. A has withdrawn the following sum during the half year ending 30th June, 2010:<\/p>\n<table border=\"2\">\n<tbody>\n<tr>\n<td>Date<\/td>\n<td>Amount<\/td>\n<\/tr>\n<tr>\n<td>January 15<\/p>\n<p>February 10<\/p>\n<p>April 5<\/p>\n<p>May 20<\/p>\n<p>June 18<\/td>\n<td>5.000<\/p>\n<p>4.000<\/p>\n<p>8.000<\/p>\n<p>10,000<\/p>\n<p>9,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Interest on drawings is charged @ 10% per annum. Find out the average due date and calculate the interest on drawings to be charged on 30th June, 2010.<br \/>\nSolution:<br \/>\nCalculation of Average due date<br \/>\n(Base Date 15th January, 2010)<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10824\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-17.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material 17\" width=\"607\" height=\"390\" srcset=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-17.png 607w, https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-17-300x193.png 300w\" sizes=\"(max-width: 607px) 100vw, 607px\" \/><br \/>\nAverage due date of drawings means as if \u20b9 36,000 has been withdrawn on 19\/4\/2010. Interest on Drawing is charged from the date of drawing to the end of period.<br \/>\nNumber of days from 19th April, 2010 to 30th June, 2010 = 72 days<br \/>\nHence interest on drawings @ 1096 should be charged for 72 days<br \/>\nInterest = \u20b9 36,000 x \\(\\frac { 72 }{ 365 }\\) x \\(\\frac { 10 }{ 100 }\\) = \u20b9 710<br \/>\nHence, interest on drawings \u20b9 710 will be charged from A on 30th June, 2010.<\/p>\n<p>Question 14.<br \/>\nMr. Alok owes Mr. Chirag \u20b9 650 on 1st January 2018. From January to March, the following further transactions took place between Alok and Chirag<\/p>\n<table border=\"2\">\n<tbody>\n<tr>\n<td>January 15<\/td>\n<td>Alok buys goods<\/td>\n<td>\u20b9 1,200<\/td>\n<\/tr>\n<tr>\n<td>February 10<\/td>\n<td>Alok buys goods<\/td>\n<td>\u20b9 850<\/td>\n<\/tr>\n<tr>\n<td>March 7<\/td>\n<td>Alok received Cash loan<\/td>\n<td>\u20b9 1,500<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Alok pays the whole amount on 31st March, 2018 together with interest @ 696 per annum. Calculate the interest by average due date method.<br \/>\nSolution:<br \/>\nCalculation of average due date<br \/>\nAlok pays the whole amount on 31st March, 2018 together with interest at 696 per annum.<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10825\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-18.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material 18\" width=\"610\" height=\"285\" srcset=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-18.png 610w, https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-18-300x140.png 300w\" sizes=\"(max-width: 610px) 100vw, 610px\" \/><br \/>\nInterest therefore has been calculated on \u20b9 4,200 from 6th Feb. to 31st March, i.e., for 54 days.<br \/>\n4,200 x 696 x 54\/365 = \u20b9 37.28<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/10\/GST-Guntur.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material\" width=\"123\" height=\"13\" \/><\/p>\n<p>Question 15.<br \/>\nKaran purchased goods from Arjun, the average due date for payment in cash is 10.08.2018 and the total amount due is \u20b9 1,75,800. How much amount should be paid by Karan to Arjun, if total payment is made on following dates and interest is to be considered at the rate of 1596 p.a.<br \/>\n(i) On Average due date<br \/>\n(ii) On 28th August, 2018<br \/>\n(iii) On 29th July, 2018<br \/>\nSolution:<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10826\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-19.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material 19\" width=\"609\" height=\"425\" srcset=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-19.png 609w, https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-19-300x209.png 300w\" sizes=\"(max-width: 609px) 100vw, 609px\" \/><\/p>\n<p>Question 16.<br \/>\nTwo Traders Yogesh and Yusuf buy goods from one another, each allowing the others, one month\u2019s credit. At the end of 3 months the accounts rendered are as follows :<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10827\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-20.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material 20\" width=\"609\" height=\"107\" srcset=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-20.png 609w, https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-20-300x53.png 300w\" sizes=\"(max-width: 609px) 100vw, 609px\" \/><br \/>\nCalculate the date upon which the balance should be paid so that no interest is due either to Yogesh or Yusuf.<br \/>\nSolution :<br \/>\n(i) Let the base date be May 18<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10828\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-21.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material 21\" width=\"609\" height=\"504\" srcset=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-21.png 609w, https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/12\/Average-Due-Date-\u2013-CA-Foundation-Accounts-Study-Material-21-300x248.png 300w\" sizes=\"(max-width: 609px) 100vw, 609px\" \/><\/p>\n<p><strong>True or False<\/strong><\/p>\n<p>Question 1.<br \/>\nIf payment is made on average due date, it results in loss of interest to creditors.<br \/>\nAnswer:<br \/>\nFalse: Average due date results in no loss to any party i.e. debtor or creditor.<\/p>\n<p>Question 2.<br \/>\nAverage due date is the median average of several due dates for payments.<br \/>\nAnswer:<br \/>\nFalse: Average due date is mean date of several due dates for payments.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/10\/GST-Guntur.png\" alt=\"Average Due Date \u2013 CA Foundation Accounts Study Material\" width=\"123\" height=\"13\" \/><\/p>\n<p>Question 3.<br \/>\nIn the calculation of average due date, only the due date of first transaction must be taken as the base date.<br \/>\nAnswer:<br \/>\nFalse: While calculating the average due date, any date may be taken as the base date.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Average Due Date \u2013 CA Foundation Accounts Study Material\u00a0is designed strictly as per the latest syllabus and exam pattern. Average Due Date \u2013 CA Foundation Accounts Study Material Question 1. What is average due date\u20b9 List out various instances when average due date can be used. 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