Stock audit of bank - eligibility of debtors
In stock audit of borrower of the bank, the drawing power is calculated on the basis of debtors' of 90 days. My query is the how should 90 days be calculated as on 31.01.2017?
1. Total sales till Jan -17 is 295 Lakhs. out of which sales of Oct to Jan is 32 Lakhs only.
2. Debtors outstanding as on 31.12.2016 is Rs. 91.35 Lakhs.
3. The borrower is engaged in the agricultural support products.
1. From which date, 90 days should be calculated? (a) from the date of sales or (b) from the last recovery.
2. Should debtors' of 32 Lakhs i.e. against the sales made in Oct to Jan, be considered?
3. If Mr A. to whom Sales of Rs. 10 Lakhs is made and every month recovery of Rs. 50,000/- is made. Is he eligible for 90 days credit?