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Average Due Date
Accountancy
Hello sir. The attached question was solved in your course video. There are two discrepancies I want to reconcile. 1. It is said that when the amount is not repaid at the end of the year, then both the borrowed date and the last date should be taken into account. If you write a note stating that it is assumed to have been paid at the end, then last date need not be taken into account. The question in the book has not addressed this issue with a note but rather solved the problem by not accounting for the extra day. 2. For Drawings by B (by ADD method) the product÷amount, that is, 368000÷2800 comes to 131.42. It was rounded off to 132. Is this a rounding of error or is there some logic behind it.
Answers (5)
Best Answer
Thread Starter
Raja RamanOk sir. Awaiting for your reply on the first doubt. Thanks in advance.
What is taught in class is more logical. You can write a note in the exams.
CA Suraj Lakhotia Admin
If its 131.42, it cannot be 131 days as it is more than 131 and hence has to be 132 days. Regarding your first question, will check and get back.
Ok sir. So irrespective of whether it is more than or equal to 5, or below 5, if result is in decimal, it should be taken as the next day? Like the above example.
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