Mathematics · Drawing Power Calculation
Calculate the Drawing Power (DP) for a Cash Credit account based on the following data: • Value of Stock in Godown = 500 lakh rupees • Value of Creditors for Goods = 100 lakh rupees • Value of Debtors (up to 90 days) = 200 lakh rupees • Value of Debtors (above 90 days) = 50 lakh rupees • Margin on Stock = 25% • Margin on Debtors = 40% • Sanctioned Limit = 450 lakh rupees
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1390 lakh rupees
- 2400 lakh rupees
- 3420 lakh rupees✓
- 4450 lakh rupees
Correct answer
420 lakh rupees
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