50. Total purchase 1,70,000, cash purchases . 16,000, purchase return 8,000, creditors at the end of the year 32,000, creditors in the beginning 24,000. What will be the creditors turnover ratio? (a) 5.12 times (b) 5.16 times (c) 5.21 times (d) 5.25 times
Answers
Solution :
•° Total purchase = 1,70,000
•° Purchase return = 8000
•° Cash purchase = 16,000
•° Net credit purchase = Total purchase - Cash purchase - Purchase return
•° Net credit purchase = 170000 - 16,000 - 8000 = 146000
•° Creditors at the beginning = 24000
•° Creditors at the end = 32000
→ Creditors turnover ratio = 146000 × 2/(24000 + 32000) = 5.21 times
Therefore, correct option is (a)
Question:-
50. Total purchase 1,70,000, cash purchases . 16,000, purchase return 8,000, creditors at the end of the year 32,000, creditors in the beginning 24,000. What will be the creditors turnover ratio?
Options:
(a) 5.12 times.
(b) 5.16 times.
(c) 5.21 times.
(d) 5.25 times.
Given:-
- Total purchase = ₹1,70,000.
- Cash purchase = ₹16,000.
- purchase return = ₹8,000.
To Find:-
- What will be the creditors turnover ratio?
Solution:-
= 1,70,000 – 16,000 – 8,000 = ₹1,40,000.
● Creditors at the beginning = ₹24,000.
● Creditors at the end = ₹32,000.
= 5.12 times.
Answer:-
Hope you have satisfied. ⚘