Commerce – II 1

SOLUTIONS TO
INSTANT PAPER
COMMERCE PAPER – II

MAY 2006
PART – A
I. Answer any two of the following questions, not exceeding 40 lines each.
2 x 10 = 20
(a) What is the role of retailer in modern marketing?
Ans.:
Role of retailer in modern marketing
Retailing means the sale of goods to the final consumers. A person who carries on
this business is called a retailer. The retailer purchase goods in small quantities and selling
them to ultimate consumers.
I. Services to manufacturers and wholesalers :
1. Opportunity to present products : The retailers give an opportunity to
manufacturers or wholesalers to present their products to consumers. The retailers
arrange for the display of goods, supply necessary information about products etc.
2. Concentrate on production : The manufacturers are relieved from the burden of
selling goods in small quantities to the consumers and concentrate only on
production activity. This saves their time and efficiency to concentrate on
production.
3. Provides information : The retailers provide valuable information to the
manufacturers such as trends, in marketing changes, in fashion, etc., which have
bearing on consumer demand. This will help to manufacturers to bring necessary
steps for change.
4. Marketing of new product : Retailer renders valuable services in promoting new
product in the market.
5. Reduce the risk of loss : The retailers in direct contact with the customers and help
the manufacturers to reduce the risk of loss by giving information about quality,
quantity and price range is required.
Commerce – II 2

II. Services of Retailers to Consumers :

1. Largest choice : The retailer keeps large variety of goods manufactured by different
producers. This enables the consumers to have largest choice as to cost, quality,
colour, size etc.
2. Relief from storage : Retailers supply goods to the consumers in any quantities at
convenient place. Therefore, consumers are not required to store a large stock of
commodities.
3. Supply of information : Retailers provide useful information to the consumers
about the new products and new varieties. This helps the consumers to purchase the
right product at right price and, right place.
4. Credit facility : Retailer offers credit facility to those customers whom they know
personally. This increases sales and profit.
5. Expert advice : Retailer offers free expert advice to his customers about the merits
and demerits of different products which helps them to go for better product.
6. Extra services : In order to meet the growing competition retailers have started
performing after sales service, free delivery of goods at home etc.
7. Personal attention : The retailer personally visits his customers and collect orders
and makes enquiry about the quality of the good supplied. He also entertains
complaints and solves them to get consumer satisfaction.
(b) Discuss consumer movement in India
Ans.:
Consumer Movement in India
Consumer exploitation is the main force which drove for the consumer movement in
India. A consumer movement is definitely less radical than any other radical movement of
mass action. This movement may be described as the collective power of consumers to take
a country forward with respect to awareness, education and development.
The co-operative consumer movement was started in 1904 in India. The focus of this
movement was only on distribution of goods rather than on the welfare of consumer. There
are a few consumer associations in some important cities.
Consumer Guidance Society of India
In 1966, nine housewives and social workers got together and formed the `Consumer
Guidance Society of India’ (CGSI) in Mumbai, so as to protect the interest of consumers. It
has now thousands of members and several branches. This society conducted tests on
various foodstuffs for adulteration and consumer products for substandard performance. ISI
certificate of food colours demanded by this society is now mandatory.
Commerce – II 3

During 1966, under the able leadership of late J.R.D. Tata and Rama Krishna Bajaj
and same progressive manufacturers and traders came together and formed the Fair Trade
Practices Association in Mumbai. The main objects of this association are to codify existing
trade practices and to set up effective machinery for their implementation in an organised
way so as to create public confidence in business community. In 1974, Sri Bindu Madhav
Joshi started Akhil Bharatiya Gnhak Panchayat in Pune. This organisation organised
consumer agitation successfully in Maharashtra.
Many consumer organisations have come up in almost all parts of the country after
1975. In 1978, the Consumer Education and Research Centre was set up in Ahmedabad. It
is a public trust. In appropriate cases this organisation files petitions, writs and complaints in
the Supreme Court, High Court, the Monopolicies and Restrictive trade practices
commission. The other association which are protecting the interest of consumers in India
include Consumer Unity and Trust society, Calcultta, Consumer Education Centre,
Hyderabad and Karnataka, Consumer Service society, Bangalore.
Present status :
Today, there are a number of voluntary associations, operating in our country. If
consumer organisations join together to form larger confederations, it is hoped that the
consumer movements will gain momentum to solve the problems of consumers. If the
Government Protects its citizens till awareness is generated, there is no doubt that the
consumer movement in our country will develop and catch momentum in its real spirit.

c) Explain the functions of Stock Exchange.

Ans:
Stock Exchange – Definition :
Garg K. L.: An association of persons engaged in the buying and selling of stocks, bonds
and shares for the public on commission and guided by certain rules and usages.
Securities Contracts (Regulation) Act 1956: Any body of individuals whether incorporated
or not, constituted for the purpose of assisting, regulating, or controlling the business
of buying, selling or dealing in securities.
Functions of Stock Exchange
Stock exchange, being a part of capital market, performs two functions viz., primary
functions and subsidiary functions.
A. Primary Functions:
The following are the basic functions of a stock exchange.
1. Provision of ready market for securities: The stock exchange provides a ready
market for securities. The investors can easily buy and sell securities on the floor
Commerce – II 4

of the stock exchange. The prices at which the securities have been traded are
regularly given in the electronic and print media for the benefit of investors.
2. Determination of security prices: The stock exchange helps in determining the
prices of various listed securities. The buying of securities regularly leads to the
determination of prices of securities. The exchange helps in the provision of
prices of securities through print and electronic media.
3. Mobilisation Surplus Savings: Stock exchange is a channel for mobilising
capital. It helps in the mobilisation of small savings from various parts of the
country. By directing the flow of capital into worthwhile projects, it helps faster
economic development of the country. It provides mobility capital and facilitate
sound investment.
4. Provision of Liquidity for securities: In a stock exchange buying and selling
securities takes place regularly and systematically. Hence, an investor can
encash his securities at any time.
5. Protection of investors: A stock exchange functions strictly according to rules
and regulations. These rules and regulations provide a check on over trading in
securities. They prevent the manipulation of prices. Thus, a stock exchange
serves as a caretaker of investor ‘s money.
6. Encourages speculative dealings: Most of dealings are in the form of forward
contracts. In stock exchanges all facilities for a future contract are provided. The
terms of contract, payment and other conditions will be certified by the exchange.
This encourages speculation.
7. Barometer of economy: A stock exchange serves as a reliable barometer of a
country’s economic situation. It reflects the changes taking place in the economy.
It is a symbol of the development of an economy.
B. Subsidiary Functions:
In addition to the above primary function, stock exchange performs the following
subsidiary functions.

1. Safety of Investment: Securities in the stock exchanges are listed after

complete security. It prevents the trading of false and duplicate securities. It
also facilitates in the immediate and easy transfer of securities.
2. Provision of information about listed companies: The organised stock
exchange collects information about the companies listed with it and publish
the information in the form of “Official Year Book”. This proves very useful to
the investors in making investment decisions.
Commerce – II 5

3. Publication of statistics: Stock exchanges publish regularly correct reports

regarding securities trade. They provide free information from such reports to
investors.

II. Answer any four of the following questions, not exceeding 20

lines each.
4 x 5 = 20
(a) Explain the procedure for taking Life Insurance policy.
Ans.:
Procedure for taking Life Insurance policy
The following steps are necessary to take a life insurance policy.
1. Submission of Proposal : The prospective policy holder has to fill proposal form,
after obtaining it from an Agent. It contains necessary information like, name,
address, profession, status of health, family history etc. The proposer is required to
disclose all the material information. Insurance is the contract of good faith, so all the
statements made must be true and factual.
2. Medical examination : The proposer is medically examined by the doctor of the
Corporation. This examination is free of charge.
3. Proof of the age : The proposer has to give satisfactory documentary proof of age.
4. Acceptance of the proposal : After verifying the proposal form, medical report,
proof of age etc., if everything is satisfactory, the insurance company accepts the
proposal and asks to pay the first premium.
5. Payment of Premium : The policy holders have to pay the insurance premium,
which may be monthly, quarterly, half-yearly or annually. A grace period of 15 days is
allowed. Premium is payable in advance. If the premium is not paid the policy is
cancelled but may be renewed.
6. Coverage of Risk : After the receipt of the first premium the risk starts and
continues, so far the premium are paid on due dates. Finally, insurance policy is sent
with all the terms and conditions to the insured.

(b) Write the advantages of advertising through television.

Ans.:
Television Advertising
It is said that today television advertising is the best selling media ever invented. It has a
potential advertising impact unmatched by an other media. It is a means of bringing actual
Commerce – II 6

demonstration in the homes of the prospects and is therefore more effective media when
compared with radio. That is why the position of radio advertising has now being gradually
taken by television advertising.
The coverage of television is increasing at a rapid pace in India. This media is
particularly advantageous for those advertisers whose products require demonstration.
Sponsored programmes have also been started on television in India.
Advantages :
1. On television the products can be demonstrated and their use can be explained. No
other medium can compete with T.V. as far as effective presentation is concerned.
2. This medium reaches the people almost like personal or face to face contract.
3. Advertisements can be clubbed with entertainment programmes to avoid monotony
arising on account of continuous viewing of advertisements.
4. This medium facilitates the advertisers to use computer graphics, music, spoken
words, written words and illustrations while transmitting the message.
5. The message can be sent conveniently depending on the geographical region to
cover and accordingly the channel can be chosen.
6. This medium allows the advertiser to repeat the message as frequently as possible
to draw the attention of the target audience.

(c) Explain differences between Foreign trade and Home trade.

Ans.:
Home Trade (Inland Trade) :
Internal trade refers to the trade within the geographical boundaries of a country.
Foreign Trade (External Trade) :
It refers to the trade which is spread beyond the boundaries of a country.
The following are the differences between these two trades.

Distinction between Inland Trade and Foreign Trade

Points of Home Trade Foreign Trade
Difference
1. Territorial limits This trade is carried on It is carried on beyond
within the territorial limits of the territorial limits of
the country. a country.
2. Currency Payment is made in the Payment is made in the
national currency. foreign currency.
3. Licence from Generally no licence is Import and Export
Government required licence from the
Commerce – II 7

Government is
required
4. Transportation Goods are generally Generally, good are
transported by rail or transported by ships
road and aero-planes
5. Foreign exchange No foreign exchange is Foreign Exchange is
required required.

(d) What are the requirements for the Listing of Shares?

Ans:
Listing of Securities :
Listing of securities means the inclusion of securities permitted to be traded in the
official list of a stock exchange. The names of companies of which securities are allowed
to be traded or included in the ‘official trade list’ of the stock exchange. It indicates that
the securities of those companies are listed by the stock exchange. Government
securities do not required listing like other corporate securities.
Requirements for Listing :
Any Company to get its securities listed for trading at a stock exchange as per
Securities Contract (Regulation) Act, 1956 must submit the following documents.
1. Memorandum and Articles of Association
2. A copy of prospectus or statement in lieu of prospectus.
3. Copies of balance sheets, audited accounts, agreements with promoters,
underwriters, brokers etc.
4. Letters of consent from various financial institutions.
5. Details of shares and debentures issued and shares forfeited.
6. Details of issue of bonuses and dividends declared.
7. History of company in brief.
8. Agreement with managing directors etc.
9. An undertaking regarding companies with the Provisions of Companies Act, 1956
and Securities Contract (Regulations) Act, 1956 as well as rules made therein.
10. A list of the highest ten holders of each class of securities of the company.

(e) Explain the Time Management

Commerce – II 8

Ans:
Time Management
Time is a very important factory in any sphere of life, particularly in business. Many
decisions have to be taken at the right time and so also actions. One can find that some
individuals manage the activities always on time, whereas others complain that the time was
not enough though the amount of activity involved is same. This shows that the ability to
manage time and carry out all the required activities in time is a skill. Now how do we learn
to manage to do things on time. This ability to manage to do things in time is called as Skill
of Time Management.
In modern society time has become very important. There are many instances where
action cannot be postponed. The advent of computers and automation had reduced the
burden of routine activities. Under these conditions one should know how to make effective
use of facilities, so that valuable time can be saved for more crucial activities.
(f) State the characteristics of Computer.
Ans.:
Characteristics of Computer
The following characteristics of a computer.
1. Speed : Computers are characterised for their speed. They accept and process the data
and information at a vary fast rate. Speed is the important factor that motivate every one
to use a computer.
2. Calculations : Computer performs calculations of both arithmetic, mathematical,
statistical and scientific. In recent years computers were ore used for information
processing.
3. Store : It has the ability to store any amount of data or information. The internal memory
is built-up in 1K to K modules, where K equals lozy storage locations.
4. Accuracy : There is no scope for inaccuracy in the results giving by the computer.
Incorrect calculations, errors, mistakes do not take place in a computer system.
5. Reliability : Today, computers are extensively used because of their reliability. The
users can depend on the computers with confidence.
6. Retrieval : Another feature of electronic machine is that it facilitates retrieval of data
stored in the computer. It means recollection of stored data when required.
7. Logic : Computer has its own logic to think and decide for its own internal and external
control and to give desired results.
8. Memory : Another important characteristics of a computer is that it has a brain of its own
with brilliant memory. It can accept and store any information for a long time.
Commerce – II 9

9. Consistency : Computers are highly consistent but not human beings. In performing
routine, repetitive and heavy work, they never get fatigue or bored. They are highly
suitable for carrying out voluminous work.
10. Flexibility : A computer is a very flexible machine and can be used for any purpose,
time and condition.
11. Communication : Computer has the capability to communicate with others and
exchange information between them and tog et interconnected under the networking
system.
12. Multi-user and friendly user : Computer with the mechanism of multi user permits
many individuals to use the same computer simultaneously for other requirements of all
the users too.

III. Answer any Five of the following questions, not exceeding 5

lines each.
5 x 2 = 10
(a) Insurable interest
Ans.:
The insured must have insurable interest or actual interest in the subject matter of
the Contract of Insurance. He must have such interest that he would have benefit from
its existence, or loss from its destruction. Insurable interest is necessary for a valid
contract of insurance. Insurable interest must be a pecuniary interest. Insurable interest
is not to be presumed from the existence of mere relationship. Therefore, the pecuniary
interest must be proved. Only a person who has insurable interest in the life of insured
can effect the contract of life insurance. The following have the insurable interest.

i. A child has an insurable interest in the life of his father.

ii. A person has unlimited insurable interest in his own life.
iii. A husband has an insurable interest in the life of his wife.
iv. A wife has it in the life of her husband.
v. A creditor has an insurable interest, to the extent of his debt, in the life of his
debtor.
vi. A partner in business has an insurable interest in the life or lives of his co-partner
or co-partners.
vii. A company has an insurable interest in the life of a senior officer whose death
may seriously affect the profits of the business of that company.
Commerce – II 10

The time when insurable interest should exist differs according to the nature of
insurance. In life assurance, the assured should have insurable interest at the time
the contract was entered into. In marine insurance it should be at the time of loss. But
in fire insurance, insurable interest at the time the contract was entered into. In
marine insurance it should be at the time of loss. But in fire insurance, insurable
interest must exist not only at the time the contract was entered into, but also at the
time of loss.
(b) E – commerce
Ans.:
It is the process of conducting business by electronic means. It means the use of
computer and other relating electronic equipment to do business through internet. E-
Commerce is a process of buying and selling of goods or services online through internet
any time and any where and payment by electronic credit cards.
(c) Outdoor media
Ans.:
Outdoor or mural advertising is the oldest form of advertising and remains the most
common media even today. It is also called `wall advertising’. Outdoor advertising consists
of a display of advertisements out of door which may be in the form of posters, painted
signs, field signs, neon light signs, hoardigns and posters carried by sandwitchmen. This is
also referred to as mural advertising as posters consisting of a picture, are often placed on
walls particularly a large one, printed directly on a wall or large phtograph attached directly
to a wall. Small playcards or posters placed outside or inside carriages such as trams,
delivery –vans, buses, railway carriages etc., are come under this category. The new form of
advertising by using balloons, kites and smoke-writing in the sky is also a part of outdoor
advertising.
(d) Write two powers of District Forum.
Ans.;
District Forum shall have the same powers are vested in a Civil Court under the
Code of Civil procedure, 1908 while trying a suit in respect of the following matters,
namely ;
(i) the summoning and enforcing the attendance of any defendant or witness
and examining the witness on oath;
(ii) the discovery and production of any document or other material object
produceable as evidence.
(iii) The reception of evidence on affidavits;
Commerce – II 11

(iv) The requisitioning of the concerned analysis or test from the appropriate
laboratory or from any other relevant source
(v) Issuing of any commission; (i.e., warrant conferring authority) for the
examination of any witness; and
(vi) Any other matter which may be prescribed.
(e) Excise duty
Ans.:
Excise means a tax or duty on goods produced within the country, either in the process
of their manufacture or before their sales to consumers. The central excise duties have been
an important and growing source of revenue to the government, as more than thirty five per
cent of the total revenue comes from this source. However, excise revenue from items such
as motor spirit, cement, tyres, steel etc., is continuously increasing. The revenue from sugar,
tobacco, textiles and matches present a fluctuating trend in our country. This is due to yearly
fluctuations in the production of those commodities.
(f) Bears
Ans.:
Bear is a speculator, who anticipates fall in the price of securities. He sells securities
for future delivery. He sells securities for future delivery. He sells securities which he does
not possess. He sells with the hope to buy the securities at a lower price before the date of
delivery. In India, a bear is known as a mandiwala.
(g) Motivation
Ans.:
Motivating is the work a manager performs to inspire, encourage and impel people to
take required action. According to M.H. Maslow, it is the process of stimulating people to
take desired course of action. In order to motivate employees, managers must provide a
congenial working atmosphere coupled with attractive incentives.
(h) Key – board
Ans.:
It is a primary input device to the computer. The key board has ordinary keys of standard
manual or electronic typewriter. Besides, the computer key board has some special keys to
perform some special function. Each key bears a character or characters both of numbers,
alphabet and other symbols.

PART – B
Solution IV:
Revaluation Account
Commerce – II 12

Dr. Cr.
Particulars Amount Particulars Amount
Rs. Rs.
To Bad debts 1,000 By Buildings 7,000
Reserve
To Depreciation
Furniture 1,000
Machinery 2,500 3,500
To Capitals
Harshitha 1,500
Sindhu 1,000 2,500
7,000 7,000

Capital Account
Dr. Cr.
Particulars Harshitha Sindhu Particulars Harshitha Sindhu
To Balance c/d 95,500 57,000 By Balance b/d 40,000 20,000
By Revaluation a/c 1,500 1,000
By General Reserve 9,000 6,000
By Goodwill 45,000 30,000
95,500 57,000 95,500 57,000
By Balance b/d 95,500 57,000

Balance sheet as on …
Dr. Cr.
Liabilities Amount Assets Amount
Rs. Rs.
Creditors 20,000 Cash 13,000
Bills payable 5,000 Bank 7,000
Capitals: Debtors 9,000
(10,000 – 1,000)
Harshitha 95,500 Furniture 19,000
(20,000 – 1,000)
Sindhu 57,000 Machinery 22,500
(25,000 – 2,500)
Shravani 10,000 1,62,500 Buildings 42,000
(35,000 + 7,000)
Goodwill 75,000
1,87,500 1,87,500

Solution V (a):
Consignment Account
Dr. Cr.
Particulars Amount Rs. Particulars Amount Rs.
To Goods sent 20,000 By Kiran a/c 25,000
Consignment a/c
To Cash 1,500 By Stock 7,167
Commerce – II 13

To Kiran 1,500
To Kiran 2,500
To Profit & Loss a/c 6,667
32,167 32,167

Kiran Account
Dr. Cr.
Particulars Amount Rs. Particulars Amount Rs.
To Cash 25,000 By Cash 5,000
By Consignment a/c 1,500
By Consignment a/c 2,500
By Bank 16,000
25,000 25,000

Solution V (b):
Income and Expenditure Account for the year ended 31-12-1999
Amount Amount Amount Amount
Expenditure Income
Rs. Rs. Rs. Rs.
To Salaries 20,000 By Subscriptions 35,000
Add: Outstanding 3,500 23,500 Less: 1998 1,500
To Rent 7,000 33,500
To Printing & 1,000 Less: 2000 2,500
Stationery
Add: Outstanding 500 1,500 31,000
To Postage 500 + 1999 Outstanding 2,000 33,000
To Excess of Income 17,000 By Interest on 15,000
over expenditure investments
By Bank interest 500
By Donations 1,000
49,500 49,500

VI. Answer any FIVE of the following

(a) Explain days of grace :
Ans.:
While calculating due date of the bill, three days of grace have to be compulsorily
added. According to Negotiable Instrument Act, the drawee can avail of 3 days of grace
as a matter of legal right.

(b) What is the need for providing depreciation?

Ans.:
Need for Depreciation :

The following are the reasons for depreciation

Commerce – II 14

1. Wear and Tear : The value of fixed assets decreases because their use in the
business. The more an asset is used, the more is the decrease in its value.
2. Depletion : An asset may get exhausted through working. This is the case with
mines, minerals, oil wells etc.
3. Obsolescence : Due to technological innovations changes in fashions etc., the
assets like plant and machinery may become obsolete early.
4. Laps of Time : In the passage of time, the value of certain assets may decline,
even if they are not used.

(c) Define Account Current

Ans.:
J.R. Botliboi defines Account Current as a ``Statement in debit and credit form
recording the transactions between two parties during a particular period, interest usually
being calculated on each item at an agreed rate and included in the account.’’
When there are a number of credit transactions taking place between two parties,
one party sends a statement of such transactions to the other. To conclude ``Account
Current’’ is a statement drawn and presented in the form of a ledger account, giving therein
details of transactions together with interest.
(d) Red Ink Interest
Ans.:
In case the due date of a bill falls after the date of closing the account, then no interest is
allowed for that. However, interest from the date of closing to such due date is written in
`Red Ink’ in the appropriate side of the `Current Account’’. This interest is called Red-Ink
Interest. This Red Ink Interest is treated as negative interest.
(e) Account Sales
Ans.
A Statement submitted by the consignee to the consignor giving account of the sale
proceeds, details of various expenses incurred and the commission due to him.

(f) Error of principle

Ans.
Errors involving violation of accounting principle are termed as ``errors of principle.
For example, treating capital expenditure as revenue expenditure or vice versa.
Commerce – II 15

1. A credit sale of old machinery recorded in the sales journal instead of journal
proper. This results in crediting the sales account instead of machinery account.
This is an error of principle because it amounts to treating an expenditure of
capital as revenue expenditure.
2. An expenditure on repairs of machinery (revenue expenditure) debited to
machinery account (treated as capital expenditure)
3. Payment of wages for construction of building wrongly debited to wages account
instead of building account.
(g) Capital Expenditure
Ans.
An expenditure intended to benefit future periods is known as capital expenditure. In
other words, if the benefit of an expenditure is not exhausted in one accounting period, but is
spread over future periods, the expenditure is known as capital expenditure. For instance, a
computer bought during the current accounting period is intended to be used over and over
again, so that the benefit of its usage is spread over a number of future accounting periods.
The same is true of the land, buildings, plant and machinery etc.
(h) Partnership deed
Ans.:
The written document containing the terms of agreement among the partners is
known as Partnership deed. The following contents are normally included in a partnership
deed.
VII. Answer any TWO of the following questions
(a) Explain the main features of a bill
Ans.:
A bill has the following characteristics.
1. It must be in writing
2. It must contain an order
3. The order must be unconditional
4. It must be signed by the maker of the instrument
5. It is made by the creditor
6. It must be for a specified amount and specified period
7. It should be duly accepted by the debtor.
(b) Explain the errors disclosed by trial balance.
Ans.:
The following are the errors disclosed by trial balance.
1. Omission of Posting
Commerce – II 16

2. Omission of Casting
3. Omission of carry forward
4. Wrong Posting
5. Wrong totalling
6. Wrong carry forward
7. Wrong balancing
8. Omission of an amount from Trial Balance

Solution VII (c):

Machinery Account
Dr. Cr.
Date Particulars Amount Date Particulars Amount
Rs. Rs.
1-7-99 To cash 50,000 31-12-99 By Depreciation 2,500
(50,000 x 6/12 x 10/100)
“ By Balance c/d 47,500
50,000 50,000
1-7-00 To Balance b/d 47,500 31-12-00 By Depreciation 5,000
(50,000 x 10/100)
“ By Balance c/d 42,500
47,500 47,500
1-7-01 To Balance b/d 42,500 31-12-01 By Depreciation 5,000
(50,000 x 10/100)
“ By Balance c/d 37,500
42,500 42,500
1-7-02 To Balance b/d 37,500 31-12-02 By Depreciation 5,000
(50,000 x 10/100)
“ By Balance c/d 32,500
37,500 37,500
1-7-03 To Balance b/d 32,500 31-12-03 By Depreciation 5,000
(50,000 x 10/100)
“ By Balance c/d 27,500
32,500 32,500
1-7-04 To Balance b/d 27,500

Solution VII (d):

No. of days from

Due Date Amount Rs. Product
base date to due
2000
Jan 25 1,000 0 0
Feb 15 1,500 21 31,500
Mar 7 2,000 42 84,000
April 20 2,500 86 2,15,000
7,000 3,30,500

Total of Products
Average Due Date  Based Date 
Total of Amounts

3,30,500
 25 January 
7,000
Commerce – II 17

= January 25 + 47
= March 12, 2000