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Drawing power

Vivek Mehta (Officer) (24 Points)

14 September 2013

Actually what is the procedure of find DP for CC A/c we collecting Stock stat but what is best way to find dp

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Prashant Kini (Article Assistant) (154 Points)
Replied 14 September 2013

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)

sanjay singhal (CA) (987 Points)
Replied 15 September 2013

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.

ABHINANDAN JAIN (CA Student) (886 Points)
Replied 21 September 2013

download this file and fill ur data to find ur solution..

hope it will resolve ur problem..

Attached File : 244439 1232837 stock statement dp calculation statement.doc downloaded: 1745 times

Jaydeep Bhuva (Article) (29 Points)
Replied 14 December 2015

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)