# Question 52 Chapter 4 of +2-B – USHA Publication 12 Class

Q-52- CH-4 Book 2 - Usha Pub. +2 Book 2020 - Solution

Question 52 Chapter 4 of +2-B

52. (Average Age of Trade Payable) A company purchases goods both for cash and on Credit. Following information is available.

 ₹ Total Purchases 4,00,000 Cash Purchases (included in above) 50,000 Return outwards 10,000 Trade Payable (Closing) 75,000 Bills Payable (Closing) 5,000

Calculate average age of trade payable. Assuming 365 days in the year.

## The solution of Question 52 Chapter 4 of +2-B: –

 Average Age of Trade Payable = No. of days in a year Trade Payable Turnover ratio or = Average Accounts Payable x No. of days in a year Annual credit (Net) Purchases Account Payable = Creditors + Bills Payable = ₹ 75,000 + ₹ 5,000 = ₹ 80,000 Annual Credit Purchase = Total Purchases – (Cash Purchases + Purchases Return) = ₹ 4,00,000 – (₹ 50,000 + ₹ 10,000) = ₹ 4,00,000 – ₹ 60,000 = ₹ 3,40,000
 Average Age of Trade Payable = ₹ 80,000 x 365 ₹ 3,40,000
 Average trade receivable = 86 days

Also, Check out the solved question of previous Chapters: –

## Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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