Question

Q.1 Praveen buys goods on credit on following dates. 10 days credit is allowed to him after which interest @ 8% p.a. is charged by supplier. 30th July 12,000 12th August 25,000
27th July 18,000
10th September 37,000
12th September 21,000
It was agreed to be settled on 30th September. Compute interest payable by using Average Due Date.​

Answer 1

"Average Due Date is 23rd August and Interest is 941.15"

Explanation:

                                            Average Due Date

Due Dates              Amount               No.of days from 27th July       Product

27th July                  18000                                      0                                 0

30th July                  12000                                      3                              36000

12th August             25000                                     15                            375000

10th September      37000                                     44                           1628000

12th September       21000                                     46                           966000  

Total Amount   =     113000                                                                  3005000

and Product      

Therefore, 27th July + 3005000/113000 =

                   27th July + 27 days = 23rd August    

So,

       Interest Payable =  23rd August to 30th September i.e  38 days

                                    = 113000 x 8/100 x 38/365 = 941.15