DEPARTMENT OF TECHNICAL

EDUCATIONANDHRAPRADESH
Name : N. USHA RANI
Designation : Lecturer
Branch : Commercial & Computer
Practice (CCP)
Institute : GPW/Guntur
Year/Sem : III Sem
Sub-Code : CCP-302
Subject : ACCOUNTANCY-II
Topic : AVERAGE DUE DATE
Duration : 50 minutes
Sub Topic : Solving Problems on A.D.D
Teaching Aids : PPT, ANIMATIONS
CCP302.7
Objectives

At the end of the period, the student will be able to:

 Calculate the Average Due Date using different
procedures

CCP302.7 2
RECAP :

You have so far learnt the calculation of Average Due

Date when :
 Due dates are given
 Due dates are not given
 The date of maturity is a Holiday
 Due dates of different bills drawn on one single
date is given

CCP302.7 3
Recap of Formula of Average Due
Date:

Average Due Date = Base Date + Product

Amount

CCP302.7 4
 Procedure for calculating Average Due
Date when due dates are not given
Example(1):
Bala had to pay Rs.6,000 to Sree on 1st July,2004. In
addition, the following transactions took place
between them.
Aug 20 ----- Bala purchased goods Rs.2,000
Sept 15 ----- Bala borrowed Rs.1,500
Sept 25 ----- Bala bought goods Rs.3,000
Nov 10 ----- Bala purchased goods Rs.1,000
Bala desires to pay the whole amount on 31st Dec,
2004.Find out the Average Due Date ?
CCP302.7 5
Solution:

 In this problem, due dates of each transaction not

given
 A common date of settling all the accounts is given

 Days of each transaction are counted from the date

of such transaction to the common date
 Days are calculated from the date of bill to the date of
settlement i.e., 31st December

CCP302.7 6
Date of No.of days up to Amount Product
Transaction 31st December Rs. Rs.
1-7-2004 183 6,000 10,98,000
20-8-2004 133 2,000 2,66,000
15-9-2004 107 1,500 1,60,500
25-9-2004 97 3,000 2,91,000
10-11-2004 51 1,000 51,000
13,500 18,66,50
Product 18,66,500
Amount = 13,500
= 138 days
Average Due Date is 138 days behind 31st
December,2004 i.e., 15th August,2004 or 16th
August,2004 (15 August is a Public Holiday)
CCP302.7 7
Assignment
(1) Calculate the Average Due Date from the following
information.

 1-1-2006 -------- Rs.3,000

 1-4-2006 -------- Rs.2,500
 1-7-2006 -------- Rs.3,500
 1-9-2006 -------- Rs.1,000
(Hint: Product of each amount should be found out by
multiplied the amounts by the months up to 31-12-2006)

CCP302.7 8
(2). A partner is withdrawing the following amounts
up to 31st March, 2004.

 1st Jan, 2004 --- Rs.3,200

 16th Jan, 2004 --- Rs.4,800
 7th Feb, 2004 --- Rs.2,500
 4th Mar, 2004 --- Rs.1,000

Find the Average Due Date

CCP302.7 9
(3) A partner has withdrawn the following sums for his
personal use during the half–year ending 30th June,
2005
 22nd Jan, 2005 ----- Rs.1,000
 31st Jan, 2005 ----- Rs.2,000
 18th Feb, 2005 ----- Rs.1,000
 9th Mar, 2005 ----- Rs.1,500
 4th May, 2005 ----- Rs.1,000
 30th June,2005 ----- Rs.1,000

Find the Average Due Date.

CCP302.7 10
(4) Ravi, a partner of the firm Teja & Co., drew the
following amounts from the firm for the quarter
ending 30th June, 2005.
 15th April ------ Rs.500
 20th May ------ Rs.1,000
 31st May ------ Rs.1,500
 10th June ------ Rs.1,000
 20th June ------ Rs.1,500
(Hint: Take the 1st date of withdrawal as a base)

Find the Average Due Date ?

CCP302.7 11
(5) Hari a partner in a firm, drawn the following amounts
for his personal use for the year ending 30thJune,
2006
Jan 8th ------ Rs. 500
Feb 12th ------ Rs.1,000
Mar 15th ------ Rs.1,500
April 10th ------ Rs.2,000
May 6th ------ Rs.2,000

Find the Average Due Date ?

CCP302.7 12
(6) A partner draws the following amounts from
the firm at the beginning of every quarter.
Ascertain Average Due Date?
 1-1-2005 Rs.3,000
 1-4-2005 Rs.2,500
 1-7-2005 Rs.3,500
 1-9-2005 Rs.1,000

Hint:- Product of each amount should be found out

by multiplying amount by the month upto 31-12-2005.

CCP302.7 13
Summary

We have learnt so far certain examples for

calculating the Average Due Date
 When Due dates are not given

CCP302.7 14
Quiz

(1) The due dates are not calculated when

(a) All transactions are of the same or single

date
(b) When transaction dates are different
(a) When transactions dates and due dates are
given
(d) a & c

CCP302.7 15
(1) One common date of settling all accounts is taken

(a) When due date are given

(b) When due dates are not given

(c) When bill drawn days only given

(d) None of these

CCP302.7 16
Frequently Asked Questions

(1) Explain the procedure to calculate Average Due Date

when due dates are not given

CCP302.7 17