15 September 2010
Dear Sirs, I hope am correct in considering that, Avg Due Date means, a date on which a single payment is made against several bills without lose or gain to either parties. for eg: if bills are drawn on several dates like, 1.01, 5.03, 4.05, 2.07, then after computations, ADD may be, say, 17.04.
Here as on 17.04 how can we settle bills drawn on 4.05 and 2.07 ??? Isn't this purely "out of logics" ??
21 September 2010
Hi, what u mentioned is only one purpose of calculation of ADD. now, in ur question u r not required 2 make payments on 1.1, 5.3,4.5 and 2.7 instead u can make a lumpsum payment on 17.4. but as u said hw can u make payment of bill due on 2.7? my dear , when a bill is drawn, drawer as well drawee know the due date. u don't need to wait for due date to come. otherwise hw vil u include it in calculation??? Keep in mind that in a/cs, nothing is "out of logic" Regards, CA Shakuntala Chhangani
CAclubindia
