Calculation of average due date- Problem Explained.

We are going to see how to calculate average due date for the problem given in the image. In the problem they have given bill drawn date, amount and different due dates. by seeing this problem you can understand that Mr Kannan purchased goods from Raman for that he has to pay the amount in different due dates . For the convenience of both the parties without affecting anyone's interest we are going to calculate average due date to settle the amount.  We have to prepare a statement with 4 columns to find average due date. First column is due date, second column is amount, third column is number of days from base date and fourth column is product. in the first column we have to write due date in the ascending order,  in the second column we have to write the amount As given in the problem , in third column we have to calculate the number of days for first due date . The number of days will be zero since, first due date will be taken as base date. To get product we have to multiply amount and number of days from base date. To calculate number of days from base date for the second one that is 24th may, we have to find number of days from 18th April to 24th May. The bill drawn on 18th April .in the April month there are 30 days. So, there will be remaining 12 days + 24 days in May totally 36 days. Now multiply amount and number of days. Do the same for remaining due dates also. The thing you have to remember is number of days should be calculated from the base date only. First due date is the base date.

Finally total the amount and product. Now apply the formula to calculate average due date.