FUNDAMENTALS OF BUSINESS MATHEMATICS AND STATISTICS I 1.29Solution :
Computation of Averge Due Date ‘0’ Date = 9.4.2012
Date of Drawing Due Date No. of days from’0’date Amount Product
` `
6.1.2012 9.4.2012 0 8,000 0
15.2.2012 19.4.2012 10 9,000 90,000
21.2.2012 24.4.2012 15 8,000 1,20,000
14.3.2012 19.4.2012 10 15,000 1,50,000
40,000 3,60,000
Average number of days =``3,60,00040,000 = 9 days∴ Average Due Date = April 9 + 9 days = April 18th 2012.
Amount of cheque = 40,000 - 1,000 - ` 39,000
Due Date of the cheque = April 18th -15 days = April 3, 2012
Workings
Due Dates to be calculated as under
It must be remember that in case of After Date bill, date of maturity is to be calculated from the date of
drawing of the bill but in case of After Sight bill, the date of maturity is to be calculated from the date of
acceptance of the bill.
Date of Drawing Date of Acceptance Period Due Date
6.1.2012 9.1.2012 3 months 9.4.2012
15.2.2012 18.2.2012 60 days 19.4.2012
21.2.2012 21.2.2012 2 months 24.4.2012
14.3.2012 17.3.2012 30 days 19.4.2012
Reciprocal Bills
Sometimes the two parties in a bill of exchange mutually agree to accept the reciprocal bills (i.e., each
party draws and accepts, respectively). Under the circumstances, the Average Due Date Method car better
be applied where there are different bills and different due dates. The method of calculation is sami as
above. But after calculating the respective Average Due Date (for both Bills Receivable and Bill: Payable),
find out the difference both in amounts and in product and average number of days may b< ascertained
by dividing the former by the latter. Then add up the days so calculated with the ‘0’ date ii order to find out
the Average Due Date.
Consider the following illustration
Example 48 :
A.N.K. had the following bills receivable and bills payable against A.N.R.
Calculate the average due date when the payment can be made or received without any loss of interest
to either party.
Notes: Holidays intervening in the period : 15 Aug., 16 Aug., 6th Sept. 2012.