Accountancy, asked by reemaskhan9456, 1 month ago

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

Answered by Anonymous
11

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)

Answered by XxitzZBrainlyStarxX
50

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:-

{ \boxed{ \sf \large \color{cyan}Net \:  credit  \: purchase = Total \:  purchase  \: – \:  cash  \: purchase \:  –  \: purchase \:  return. </p><p>}}

= 1,70,000 16,000 8,000 = 1,40,000.

Creditors at the beginning = 24,000.

Creditors at the end = 32,000.

 \sf \large Creditors \:  turnover \:  ratio  =  \frac{1,46,000 \times 2}{(24,000 + 32,000)}

= 5.12 times.

Answer:-

{ \boxed{ \sf \large \color{black}Creditors \:  turnover \:  ratio = 5.12  \: times.}}

Hope you have satisfied.

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