Question

Calculate the date on which Mr. Sharma is required to pay this amount. Take the days of grace into account.

• A. June $01,2007$
• B. May $24,2007$
• C. March $06,2007$
• D. February $16,2007$

Answer 1

Answer: (A)

June $01,2007$

$\Rightarrow$ First we calculate the due dates of the bills:

$BillNo.$	$DateofDrawing$	$Dateof$ $Acceptance$	$Tenure$	$Nominalduedate$	$Legally$ $Duedate$
1	16-02-07	20-02-07	50 days after Sight	11-04-07	14-04-07
2	06-03-07	07-03-07	2 Moths	06-05-07	09-05-07
3	24-05-07	31-05-07	4 Months	24-09-07	27-09-07
4	01-06-07	04-06-07	30 Days	01-07-07	04-07-07

Taking $14-04-2007$ as a base date.

$BillNo.$	$DueDate$	$Amount$ $Rs.$	$No.ofdaysfrom$ $14-04-07$	$Product$
1	14-04-07	8000	0	0
2	09-05-07	6000	25	150000
3	27-09-07	2000	166	332000
4	04-07-07	9000	81	729000
$Total$		$25000$		$1211000$

$\Rightarrow$ $Averageduedate=Basedate+\frac{Totalofproduct}{TotalofAmount}$

$\Rightarrow$ $Averageduedate=14-04-2007+\frac{1211000}{25000}$

$\Rightarrow$ $Averageduedate=14-04-2007+48days$

$\Rightarrow$ $Averageduedate=01-06-2007$

$\therefore$ The date on which Mr. Sharma is required to pay $Rs.25000$ amount is $June01,2007$