Total Purchases Rs 4 50 000 Cash Purchases Rs 1 50 000 Creditors Rs 50 000 Bills Payable Rs 10 000 T...........

General Accounting Principles Ratio analysis

Total Purchases Rs 4,50,000; Cash Purchases Rs 1,50,000; Creditors Rs 50,000; Bills Payable Rs 10,000. Trade Payables Turnover Ratio will be :

7.5 times

6 times

9 times

5 times

Total Purchases Rs 4,50,000; Cash Purchases Rs 1,50,000; Creditors Rs 50,000; Bills Payable Rs 10,000

trade payables turnover ratio = net credit purchases

creditors + bill payables

= Rs 4,50,000 - Rs 1,50,000

Rs. 10,000 + Rs. 50,000

= Rs. 3,00,000

Rs. 60,000

= 5 times

By: Abhipedia

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