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

Question 93 Chapter 4 of +2-B

Question 93 Chapter 4 of +2-B

Trade Receivables Turnover Ratio

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

  1st April 2018 31st March 2019
  Rs. Rs.
Sundry Creditors  1,50,000 4,50,000
Bills Payable 50,000 1,50,000

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

The solution of Question 93 Chapter 4 of +2-B: –

 

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
Average Debt Payment Period = 12
4
  = 3 Months

 

Balance Sheet: Meaning, Format & Examples

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

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

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T.S. Grewal’s Analysis of Financial Statements

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