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Drawing power
Actually what is the procedure of find DP for CC A/c
we collecting Stock stat but what is best way to find dp
Replies (5)
Value of stock*Post margin rate (say 75-80%)(include only fast moving and good quality stock only) + Debtors (for a period outstanding for less than 90 days)- Creditors(ie unpaid stock)
Drawing power is calculated as under:
Stock less margin as per terms of sanction
Less creditors
Book debts (period as per terms of sanction usually not more than 90 days)
less margin as per sanction usually 40%.
Bill discount and letter of credit dicounted not taken for do calculation.
download this file and fill ur data to find ur solution..
hope it will resolve ur problem..
I am calculation dp as under :
|
Particulars |
Rs. in Lacs |
|
Closing Stock |
|
|
Less: Sundry Creditors |
|
|
NET |
|
|
Less: Margin (25% on Stock) |
|
|
(A) |
|
|
SUNDRY DEBTORS |
|
|
Margin (40% on Book Debts) |
|
|
(B) |
|
|
Total Drawing Power (A+B) |
|
In this calculation if creditor amount is more than stock amount, then how to calculate the drawing power??
if there is a advance to sundry creditors then what will be the treatment, will we add the advance value of creditors with closing stock
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