10. Determine debtors turnover ratio if, closing debtors is Rs.40000, cash sales
is 25% of credit sales and excess of closing debtors over opening debtors is
Rs 20000.
a) 4 times b) 2 times c) 6 times d) 8 times
Answers
Answered by
22
Answer:
Explanation:
Average debtors = (Rs. 40,000 + Rs. 20,000)/2 = Rs. 30,000
Cash sales = 25% of total sales
= Rs. 40000 x 25%
= Rs. 10,000
Net credit sales = Total sales - Cash sales
= Rs. 40000 - Rs. 30000
= Rs. 120000
Debtors turnover ratio = Net credit sales/Average debtors
= Rs. 120000/Rs. 30,000
= 4 Times
Answered by
7
Answer:
mistaken
40000-30000=10000
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