A computed date on which with fairness to debtor and creditor one settlement in full may be made for all variously dated items in an account, is known as

Zero Date

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Bill Date

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Average Due Date

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None of these

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Solution

The correct option is C Average Due Date
A computed date on which with fairness to debtor and creditor one settlement in full may be made for all variously dated items in an account, is known as average due date
formula:- $b = \frac{p}{a}$
Here, $b$ =base date, $p$ = total products a=total amount

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Similar questions

Ram’s Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2011				2011
Apr. 1	To Balance b/d		7,000	Jun.30	By Sales Return A/c		300
Oct.25	To Sales A/c		13,000	Sept.5	By Cash A/c		6,500
Dec.31	To Sales		10,000	5	By Discount A/c		200
				Oct. 5	By Cash A/c		10,000
				2012
				Mar. 31	By Balance c/d		13,000
	Total		30,000				30,000
2012
Apr. 1	To Balance b/d		13,000

From the above Ram’s Account answer the following questions.

1) Whether Ram is a debtor or Creditor as 1^st April 2012?

2) Give an entry for the Posting dated Sep. 5

3) Explain the posting dated October 25.

4) Whether Ram is a debtor or creditor on 30^th Sep. 2011.

The followings are the amounts due on different dates in between the same Suggest a date on which all the bills may be paid out without any loss of interest to either party.

Q. X draws a bill of Rs. 17,000 on Y for 3 months for the amount due, which Y accepts and returns it to X. X retains the bill till due date and Y pays on the due date. On payment of Y, ______ account will be credited in the books of Y.

Q. X draws on Y a bill for ₹ 4,000 which was duly accepted by Y. Y meets the bill on its due date. Show what entries would be passed in the books of X and Y under each of the following circumstances:
(i) If X retains the bill till due date.
(ii) If X discounts the same with his banker paying ₹ 100 for discount.
(iii) If X endorses the same to his creditor Z, in full settlement of his debt of ₹ 4,080.
(iv) If X sends the bill to his banker for collection.

Q. X made the following sales to Y:

Date	Amount (₹)
Jan. 01, 2017	20,000
Jan. 08, 2017	25,000
Jan. 10, 2017	10,000
Jan. 15, 2017	40,000

For all the sales X drew bills on Y payable after 60 days. Bill drawn on Jan. 01, 2017 was retained by X with him till its due date. The bill drawn on Jan. 08, 2017 was discounted by X from the bank at 9% p.a. The bill drawn on Jan. 10, 2017 was endorsed by X to his creditor Z in full settlement of ₹ 10,400. On March 12, 2017 X sent the bill drawn on Jan. 15, 2017 to his bank for collection. All the bills were met by Y on due dates.
Pass necessary journal entries in the books of X and Y and prepare Y' s account in the books of X and X's account in the books of Y.

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A computed date on which with fairness to debtor and creditor one settlement in full may be made for all variously dated items in an account, is known as

The correct option is C Average Due DateA computed date on which with fairness to debtor and creditor one settlement in full may be made for all variously dated items in an account, is known as average due dateformula:- b=paHere,b =base date, p = total products a=total amount

The correct option is C Average Due Date
A computed date on which with fairness to debtor and creditor one settlement in full may be made for all variously dated items in an account, is known as average due date
formula:- $b = \frac{p}{a}$
Here, $b$ =base date, $p$ = total products a=total amount