Question 93 Chapter 4 of +2-B - T.S. Grewal 12 Class

Question 93 Chapter 4 of +2-B

Table of Contents

Trade Receivables Turnover Ratio

93. Calculate Trade Payables Turnover Ratio and Average Debt payment Period from the following information:

Total Purchases Rs. 21,00,000; Purchases Return Rs. 1,00,000; Cash Purchases Rs. 4,00,000.

Average Trade Receivable	=	Opening Trade Receivable + Closing Trade Receivable
		2

	=	1,50,000 + 50,000 + 4,50,000 + 1,50,000
	=	2
	=	Rs. 4,00,000
Trade Receivables Turnover Ratio	=	Net Credit Sales
		Average Trade Receivable
	=	Rs. 16,00,000
	=	Rs. 4,00,000
	=	4 Times

Average Debt Payment Period	=	12
		Trade Payables Turnover Ratio

Balance Sheet: Meaning, Format & Examples

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

Chapter No. 1 – Financial Statements of a Company
Chapter No. 2 – Financial Statement Analysis
Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
Chapter No. 4 – Accounting Ratios
Chapter No. 5 – Cash Flow Statement

Question 93 Chapter 4 of +2-B – T.S. Grewal 12 Class