Compute the Drawing Power for Cash Credit Limit granted to Mukund by Laxmi Bank for the month of March 2025 from the following information: Particulars: Value of stocks ₹50,000, Value of debtors (including debtors of ₹5,

Computation of Drawing power of Mukund For the month of March 2025 Particulars Amount in ₹ A. Stocks Value of stocks at realizable value 50,000 Less: Value of creditors for goods 15,000 Value of paid stocks 35,000 Less: Margin @20% 7,000 Drawing Power (A) 28,000 B. Debtors Value of Debtors 45,000 Less: Ineligible Debtors (Debtors older than 3 months) 5,000 Eligible Debtors 40,000 Less: Margin @50% 20,000 Drawing Power (B) 20,000 Total Drawing Power (A + B) 48,000 The sanctioned limit given in the question is ₹45000 whereas drawing power as per the above working is ₹48000. So drawing power would be restricted to sanctioned limit i.e ₹45000.