Drawing power
This query is : Resolved
20 November 2011
I WOULD LIKE TO KNOW THAT WHAT IS THE MEANING OF DRAWING POWER & HOW IT IS DIFFERENT FROM SANCTIONED LIMIT FOR A OD/CC ACCOUNT?
20 November 2011
Basicly a company takes loan from bank by hypothicated his stock & debtor up to 90 days,
Drawing power calculated on
(stock+debtors up to 90 days+margine money)-(creditors+Buyers credit)and less 25% margine = Drawing power.
if he will issue cheque after D.P. banks can stop payment. if DP is excess then you can issue cheques to your vendor up to loan suctioned limit.
Drawing power calculated on
(stock+debtors up to 90 days+margine money)-(creditors+Buyers credit)and less 25% margine = Drawing power.
if he will issue cheque after D.P. banks can stop payment. if DP is excess then you can issue cheques to your vendor up to loan suctioned limit.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Post Office RD Interest
- Itr 1 processing
- Reporting Income under Section 44ADA
- Building and other construction workers welfare cess act 1996
- ITR 1: Details for showing Exempt Income
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- ITR validation error - Balance sheet is not filled
- Bank Accounts in Balance Sheet for ITR 3
- TDS ON CASH WITHDRAWALS...
- Annual return of gst limit
- Change the gender in the registration of icai
- Lift replacement entries in housing society
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
