Calculation of Average Due Date:

28/06/2022 0 By indiafreenotes

i) Where amount is lent in one installment

Procedure for calculation of Average Due Date when lending in lump sum but repayment in installments, is as follows:

  1. The basic day is the lending date. Calculate the number of days (or months or years) from the date of lending to the date of each payment.
  2. Find out the total number of days/months/years as calculated above.
  3. Divide the total as calculated by number of installments to repay the loan.
  4. Add the result (obtained above) to the date of loan to get Average Due Date.

Average due Date = Date of Loan + [Total number of days/months/years calculated from the date of loan to the repayment of installments / installments]

ii) Where amount is lent in various installments

  1. Take any convenient date (preferably the first due date) as the Starting Point or Zero Date or Start Date or Focal Date or Base Date.
  2. Count the number of days of each transaction from the base date.
  3. Multiply the amount of each transaction with the number of days thus calculated.
  4. Add all the products so obtained.
  5. Add the amount of all transactions.
  6. Divide the total products by total amount (of all items)
  7. The result of is the number of days by which average due date is away from the Base Date

iii) Taking Grace Days into account

iv) Calculation of Due Date few months after date / Sight.