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Question 69 Chapter 7 -Unimax Publication Class 12 Part 2 – 2021

Question No -69 Chapter no - 7 Unimax Class - 12 Part -II
Question No -69 Chapter no - 7 Unimax Class - 12 Part -II

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Question 69 Chapter 7 – Unimax Publication Class 12 Part 2 – 2021

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69. Calculate creditors turnover ratio from the following information:

Particulars
Closing creditors45,000
[including 15,000 due to supplier of new furniture] 
Net purchases3,60,000
Reserve for discount on closing creditors15,000

The solution of Question 69 Chapter 7 – Unimax Publication Class 12 Part 2-2021 : –

Closing creditors=45000 – 15000
 =30,000

As only these creditors are included in it while are for the goods in which the business deal. So, these creditors for assets purchased. So, these should be excluded.

Creditor turnover ratio=net credit purchases
Average account payable
 =3,60,000
30,000
 =12 times Ans.

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