CHP – 6 UNIT 4 AVERAGE DUE DATE

ILLUSTRATION
Q1. The followings are the amounts due on different dates in between the same
parties:
Amount Rs Due Date
500 3rd July
800 2nd August
1,000 11th September
Suggest a date on which all the bills may be paid out without any loss of interest
to either party. (ILS 1)

Q2. The following amounts are due to X by Y. Y wants to pay o_ (a) on 18th
March or (b) on 14th July. Interest rate of 8% p.a. is taken into consideration.
Due Dates
10th January 500
26th January (Republic 1,000
Day) 3,000
23rd March 4,000
18th August (Sunday)
Determine the amount to be paid in (a) and in (b). (ILS 2)

Q3. Calculate Average Due date from the following information:

Date of the bill Term Amount Rs
August 10, 2015 3 months 6,000
October 23, 2015 60 days 5,000
December 4, 2015 2 months 4,000
January 14, 2016 60 days 2,000
March 14, 2016 2 months 3,000
(ILS 3)
Q4. A trader having accepted the following several bills falling due on different
dates, now desires to have these bills cancelled and to accept a new bill for the
whole amount payable on the average due date :
Sl.No. Date of bill Amount Usance of the bill
1 1st March 2016 400 2 months
2 10th March 2016 300 3 months
3 5th April 2016 200 2 months

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4 20th April 2016 375 1 month

5 11th May 2016 500 2 months

You are required to find the said average due date. (ILS 4)

Q5. Two traders X and Y buy goods from one another, each allowing the other
one month’s credit. At the end of 3 months the accounts rendered are as
follows:
Goods sold by X to Y Goods sold by Y to X
April 18 60.00 April 52.00
May 15 70.00 23 50.00
June 17 80.00 May 24

Calculate the date upon which the balance should be paid so that no interest is
due either to X or Y. (ILS 5)

Q6. Manoj had the following bills receivables and bills payable against Sohan.
Calculate the average due date, when the payment can be received or made
without any loss of interest.
Date Bills Tenure Date Bills Payable Tenure
Receivable
01/06/2016 3,000 3 month 29/05/2016 2,000 2 month
05/06/2016 2,500 3 month 03/06/2016 3,000 3 month
09/06/2016 6,000 1 month 9/06/2016 6,000 1 month
12/06/2016 1,000 2 month
20/06/2016 1,500 3 month

15 August, 2016 was a Public holiday. However, 6 September, 2016 was also
declared as sudden holiday. (ILS 6)

Q7. Mr. Kapoor had the following Bills receivable and Bills payable against Mr.
Khan, the details of which has been given as follows
Bills Receivable Bills Payable
Date Amount Tenure Date Amount Tenure
1.5.2020 400 3 months 11.5.2020 800 60 days
19.6.2020 750 2 months 21.6.2020 950 30 days

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25.6.2020 1,000 1 month 28.6.2020 1,150 45 days

7.7.2020 1,250 2 months 10.7.2020 1,800 50 days
14.7.2020 800 2 month 16.7.2020 1,250 55 days
Gazetted holidays in the intervening period 15th August (Independence day),
24th July (Emergency holiday), 10th September (Sunday) (ILS 7)

Q8. Mr. Green and Mr. Red had the following mutual dealings and desire to
settle their account on the average due date:
Purchases by Green from Rs
Red:
6th January, 2016 6,000
2nd February, 2016 2,800
31st March, 2016 2,000
Sales by Green to Red:
6th January, 2016 6,600
9th March, 2016 2,400
20th March, 2016 500
(ILS 8)

Q9. Rs10,000 lent by Dass Bros. to Kumar & Sons on 1st January, 2011 is
repayable in 5 equal annual instalments commencing on 1st January, 2012. Find
the average due date and calculate interest at 5% per annum, which Dass Bros.
will recover from Kumar & Sons. (ILS 9)

Q10.
Rs. 20,000 lent on 1st January 2015, is repaid as follows-
Rs. 2500 on 1st January 2016
Rs. 5500 on 1st January 2017
Rs. 3000 on 1st January 2018
Rs. 5000 on 1st January 2019
Rs. 4000 on 1st January 2020
Determine the average due date for settling all the above instalments by a single
payment and compute interest at the rate of 10% per annum (ILS 10)

Q11. A and B, two partners of a firm, have drawn the following amounts from
the firm in the year ending 31st March, 2015:

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Date B
Date A
Rs RS
1st July 500 12th June 1,000
30th September 800 11th August 500
1st November 1,000 9th February 400
28th February 400 7th March 900

Interest at 6% p.a. is charged on all drawings. Calculate interest chargeable by

using (i) ordinary system
(ii) Average due date system. (assume 1 year = 365 days) (ILS 11)

Q12.A partner in a rm has drawn the following amounts for the half year ended
on 31st March 2020
Date Amt
9th Sep 2019 9,000
10th Oct 2019 10,000
11th Nov 2019 11,000
12th Dec 2019 12,000
13th Jan 2020 13,000
14th Feb 2020 14,000
15th Mar 2020 15,000
Assume February has 28 days (ILS 12)

Practical Questions
Q13.Mr. Yash and Mr. Harsh are partners in a firm. They had drawn the
following amounts from the firm during the year ended 31.03.2016:
Date Amount Drawn by
Rs Rs
01.05.2015 75,000 Mr. Yash
02.07.2015 20,000 Mr. Yash
15.08.2015 60,000 Mr. Harsh
31.12.2015 50,000 Mr. Harsh
04.03.2016 75,000 Mr. Harsh
31.03.2016 15,000 Mr. Yash

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Interest is charged @ 10% p.a. on all drawings. Calculate interest chargeable

from each partner by using Average due date system. (Consider 1st May as base
date) (PP 1)

Q14. Anand purchased goods from Amirtha, the average due date for payment
in cash is 10.08.2016 and the total amount due is Rs 67,500. How much amount
should be paid by Anand to Amirtha, if total payment is made on following dates
and interest is to be considered at the rate of 12% p.a.
(i) On average due date. (ii) On 25th August, 2016. (iii) On 30th July, 2016(PP 2)

RTP Question
Q15.Calculate average due date from the following information:
Date of bill Term Amount (Rs)
1 st March, 2017 2 months 4,000
10th March, 2017 3 months 3,000
5 th April, 2017 2 months 2,000
23rd April, 2017 1 months 3,750
10th May, 2017 2 months 5,000 (May 2018)

Q16. Ram purchases goods on credit. His due dates for payments were as under:
Transaction Date Rs Due Date
March 5 300 April 08
April 15 200 May 18
May 10 275 June 13
June 5 400 July 10
Calculate Average due date. (May 2019)

Q17. Kiran had accepted bills payable to Heena, falling due on different dates.
The details of bills are as follows:
Date of bill Amount Usance of bill
9th April 2018 Rs 3,000 for 4 months
18th April 2018 Rs 5,500 for 3 months
25th May 2018 Rs 3,000 for 6 months
5th June 2018 Rs 6,000 for 3 months

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On 1st July, it was agreed that these bills should be withdrawn and that Kiran
should accept on that day two bills, one for Rs 10,000 due in 4 months and the
other for the balance with interest, due in 6 months. Calculate the amount of
the second bill taking interest @ 10% p.a. Take 365 days in year 2018-2019.
(May 2020)

Q18.Mehnaaz accepted the following bills drawn by Shehnaaz.

On 8th March, 2018 Rs 4,000 for 4 months.
On 16th March, 2018 Rs 5,000 for 3 months.
On 7th April, 2018 Rs 6,000 for 5 months.
On 17th May, 2018 Rs 5,000 for 3 months.
He wants to pay all the bills on a single day. Find out this date. Interest is
charged @ 18% p.a. and Mehnaaz wants to save Rs 157 by way of interest.
Calculate the date on which he has to effect the payment to save interest of Rs
157 (Nov 2018)

Q19. From the following details calculate the average due date:
Date of Bill Amount (RS) Usance of Bill
28th January, 2020 2,500 1 month
20th March, 2020 2,000 2 months
12th July, 2020 3,500 1 month
10th August, 2020 3,000 2 months
(May 2021)
Q20. Calculate average due date from the following information:
Date of bill Term Amount (`)
1 st March, 2021 2 months 20,000
10th March, 2021 3 months 15,000
5 th April, 2021 2 months 10,000
23rd April, 2021 1 months 18,750
10th May, 2021 2 months 25,000
(Nov 2021)
Q21. Karan purchased goods from Arjun, the average due date for payment in
cash is 10.08.2021 and the total amount due is ` 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 15% p.a. (i) On average due due (ii) On
28th August,2021 (iii) On 29th July,2021 (Nov 2022)

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Q22. . Sunder purchases goods on credit. His due dates for payments were as
under:
Transaction Date Rs. Due Date
March 5 1,200 April 08
April 15 800 May 18
May 10 1,100 June 13
June 5 1,600 July 10
Calculate Average due date (May 2022)

Past Exam Question

Q23. The following amounts are due to X. by Y. Y wants to pay on 10th July 2019.
Interest rete of 9% p.a. is taken into consideration.
Due dates Rs
th
10 January 750
26th January 1,200
rd
23 march 3,300
th
18 August (Sunday) 4,100
Determine average due date and the amount to be paid on 10 th July 2019.
Assume 10th January as base date. (5 Marks) Nov 2019)

Q24. Karan purchased goods from Arjun, the average due date for payment in
cash is 10.08.2018 and the total amount due is Rs. 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 15% p.a.
(i) On average due date (ii) On 28th August, 2018.
(iii) On 29th July, 2018. (5 Marks)(Nov 2018)

Q25. Mahesh had the following bill receivables and bills payables against Rajesh.
Calculate the average due date, when the payment can be received or made
without any loss of interest.
Date Bills Receivable Tenur Date Bills Payable Tenure
12-06-20 5,000 3 27-05-20 3,700 3
months months
10-07-20 6,200 1 07-06-20 4,000 3
month months
15-07-20 3,500 3 10-07-20 5,000 1 month
month
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12-06-20 1,500 2
month
28-06-20 2,500 2
month
15th August, 2020 was Public holiday. However, 10th September, 2020 was also
suddenly declared as holiday. (5 Marks) (Jan 2021)

Q26. Ramesh lent RS 1,50,000 to Deepak on 1 st January, 2016 at the rate of

12% per annum. The loan is repayable as under:
(i) RS 10,000 on 1 st January, 2017 (ii) RS 20,000 on 1 st January, 2018
(iii)RS 30,000 on 1st January, 2019 (iv) RS 40,000 on 1st January, 2020
(v)RS 50,000 on 1 st January, 2021
You are required to determine the average due date for settling all the above
installments by a single payment and compute interest.(5 Marks ) (July 2021)

Q27. Rakesh had the following bills receivable and bills payable against Mukesh.
Date Bills Tenure Date Bills Tenure
Receivable Payable
1 st June 3,400 3 month 29th May 2,500 2 month
5 st June 2,900 3 month 3 rd June 3,400 3 month
9 st June 5,800 1 month 9 th June 5,700 1 month
12 st June 1,700 2 month
20 st June 1,900 3 month
15th August was a public holiday. However, 6 th September, was also declared as
sudden holiday
Calculate the average due date, when the payment can be received or made
without any loss of interest to either party. (5 Marks) (Nov 2020)

Q28. Mr. Alok owes Mr. Chirag RS 650 on 1st January 2018. From January to
March, the following further transactions took place between Alok and Chirag

January 15 Alok buys goods RS 1,200

February 10 Alok buys goods RS 850
March 7 Alok received Cash loan RS 1.500
Alok pays the whole amount on 31st March, 2018 together with interest @ 6%
per annum. Calculate the interest by average due date method.

(5 Marks) (May 2018)

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