Question : Read the following information carefully and answer the question
|
Particulars |
|
|
Revenue from Operations |
8,75,000 |
|
Creditors |
90,000 |
|
Bills Receivable |
48,000 |
|
Bills Payable |
52,000 |
|
Purchases |
4,20,000 |
|
Trade Debtors |
59,000 |
Option 1: 29.6 times
Option 2: 2.96 times
Option 3: 29.6%
Option 4: 2.69:1
Correct Answer: 2.96 times
Solution : Trade Payable Turnover Ratio = Net Credit Purchases/Average Trade Payables = Net Credit Purchases/(Opening Creditors + Opening Bills Payables + Closing Creditors + Closing Bills Payables)/2 = ₹ 4,20,000/(₹ 90,000 + ₹ 52,000) = ₹ 4,20,000/1,42,000 = 2.96 times. Assuming that there are no closing Creditors and Bills Payables, hence we will not make their average.
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Found everything I wanted and it solved all of my queries for which I was searching a lot....very helpful site. A must visit.... kudos to the team!
No need to find colleges in other sites, this is the best site in India to know about any colleges in India.
When you look back in life , this app would have played a huge role in laying the foundation of your career decisions.
Found everything I wanted and it solved all of my queries for which I was searching a lot....very helpful site. A must visit.... kudos to the team!
No need to find colleges in other sites, this is the best site in India to know about any colleges in India.
When you look back in life , this app would have played a huge role in laying the foundation of your career decisions.
Found everything I wanted and it solved all of my queries for which I was searching a lot....very helpful site. A must visit.... kudos to the team!
