Drawing power calculation

CA final Student

A Bank provided cash credit facilties to a contractor and Drawing power will be calculated on the basis debtor and stoc. meanwhile bank also extended Bank guarantee facilty. the contractor takes advance from the contractee on the basis of bank guarantee. whether debtors amount will be reduced by the amount received from contractee during calculation of DP. plz help

Nagari Sultanpur U.P.Delhi

(stock +Debtors up to 90 Days )  - (creditors+bank Guarantee)*75%= DP 

Total thanks : 1 times


Finance Manager

yes debtors wil reduce by the amount recived in advance.

as a article

Debtors of sister concern company should consider for DP calculation ?


What about the debtors of inter department of company would it same be considered for DP calculation or not ?


Plz... help me..




Your are not logged in . Please login to post replies

Click here to login   Click here to Register


Avail 50% discount on all online CA classes for Nov Exam (access till Nov 20th). Use coupon code NOV15

Share on :
close x