Credit Purchases Rs 12 00 000 Opening Creditors Rs 2 00 000 Closing Creditors Rs 1 00 000 Trade Paya...........

General Accounting Principles Ratio analysis

Credit Purchases Rs 12,00,000; Opening Creditors Rs 2,00,000; Closing Creditors Rs 1,00,000. Trade Payables Turnover Ratio will be :

6 times

4 times

8 times

12 times

Credit Purchases Rs 12,00,000; Opening Creditors Rs 2,00,000; Closing Creditors Rs 1,00,000

rade receivable turnover ratio = credit revenue from operations

average trade receivables

= Rs. 12,00,000

Rs. 2,00,000 + Rs. 1,00,000 / 2

= Rs. 12,00,000 = 8 times

Rs. 1,50,000

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