Question

importance of average due date

Answer 1

HEY there...

THE AVERAGE DUE DATE IS THE VERRY IMPORTANT FOR THE CALCULATING.

AVERAGE DUE DATE IS THAT DATE OF REPAYMENT OF LOAN IN WHICH THERE WILL NOT ANY LOSS OF INTEREST TO LENDER AND BORROWER.

Bcz

IF YOU WANT TO REPAY AND WANT TO GET ALL THE LOAN WITHOUT LOSING THE INTEREST.

MONEY IS THE MOST IMPORTANT THING TO ALL SO WE ALL ARE KNEW THE VALUE OF THE MONET.

TODAY 100 RS IS MORE IMPORTANT THAN 110 RS

AFTER THE ONE YEAR DUE TO THE MONEY INTREST.


THANK YOU...

Answer 2

Answer:

Average Due Date exists the date on which several debts due on different dates can be expended by a single payment without any loss of interest either to the debtor or creditor.

Explanation:

Average Due Date exists the date on which several debts due on different dates can be expended by a single payment without any loss of interest either to the debtor or creditor. Average Due Date or Equated Due Date exists as the arithmetic average of several due dates.

To simplify the calculation of interest concerned in such transactions, we use the vision of the average due date. In this concept, an individual pays all his dues on a certain date, in a manner so that neither the debtor nor the creditor suffers loss or gains in form of interest. This date exists as the Average due date (ADD).

The concept of Average due date (ADD) exists generally used in the following situations:

• Computing interest on drawings of partners;
• For settling accounts between principle and agent;
• For settling contract accounts e.g. where parties sell goods to each other;
• Making lump-sum payments against different bills drawn on various dates with different due dates.

SPJ2