# Question 54 Chapter 4 of +2-B – USHA Publication 12 Class

Q-54- CH-4 Book 2 - Usha Pub. +2 Book 2020 - Solution

Question 54 Chapter 4 of +2-B

54. (Trade Payable T/O Ratio & Average Payment Period) Calculate (i) Trade Payable turnover ratio and (ii) average payment period.

 2016 ₹ 2017 ₹ Annual credit purchases 6,80,000 7,50,000 Creditors on January 1 80,000 60,000 Creditors on December 31 60,000 90,000

Take 360 days in a year

## The solution of Question 54 Chapter 4 of +2-B: –

2016

 Trade Payable Turnover ratio = Net credit Purchases Average Trade Payable Average Trade Payable = Opening trade Payable + Closing Trade Payable 2 Net credit Purchases = ₹ 6,80,000 = ₹ 80,000 + ₹ 60,000 2 = ₹ 70,000 Trade Payable Turnover ratio = ₹ 6,80,000 ₹ 70,000 = 9.71 times Average Payment period = No. of days in a year Trade Payable Turnover ratio = 360 9.71 = 37 days

2017

 Net credit Purchases = ₹ 7,50,000 = ₹ 60,000 + ₹ 90,000 2 = ₹ 75,000 Trade Payable Turnover ratio = ₹ 7,50,000 ₹ 75,000 = 10 times Average Payment period = No. of days in a year Trade Payable Turnover ratio = 360 10 = 36 days

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

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

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