Question 39 Chapter 7 -Unimax Publication Class 12 Part 2

Question 39 Chapter 7 – Unimax Publication Class 12 Part 2 – 2021

Table of Contents

39. From the following calculate creditors turnover ratio and the average payment period:

Particulars	(₹)
Total purchases	2,75,000
Cash purchases [include in the above]	60,000
Purchases returns	35,000
Creditors at the end	45,000
Bills payable at the end	15,000
Reserve for discount on creditors	7,200

The solution of Question 39 Chapter 7 – Unimax Publication Class 12 Part 2-2021 : –

Creditors turnover ratio	=	Net credit sales
		Average account payable

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	=	2,75,000 – 60,000 -35,000
		45,000 + 15,000

	=	1,80,000
		60,000

3 times

Average collection period	=	12 months
		DTR

	=	12	=	4 months Ans.
		3

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Accounting Ratios – Meaning and Definition

Chapter No. 1 – Company Accounts (Share Capital)
Chapter No. 2 – Company Accounts (Issue of Debentures)
Chapter No. 3 – Company Accounts (Redemption of Debentures)
Chapter No. 4 – Financial Statements of a Company
Chapter No. 5 – Financial Statement Analysis
Chapter No. 6 – Tools of Financial Statement Analysis- Comparative and Common Size
Chapter No. 7 – Ratio Analysis
Chapter No. 8 – Cash Flow Statement