A company average creditors Are rs.50000 and creditors turnover ratio is 1.5 company makes 50%of its purchases on credit basis what is the total purchases of the company 150000 37500 75000 225000
Answers
Cost of Goods Sold = Opening Stock + Purchases + Closing Stock
= 40,000 + 3,20,000 − 1,20,000 = 2,40,000
Answer:
Cost of Goods Sold = Opening Stock + Purchases + Closing Stock
= 40,000 + 3,20,000 − 1,20,000 = 2,40,000
Explanation:
A company's average creditors
A creditor or lender is a party with a claim on a second party's services. It is a person or institution to whom money is owed. The first party, in general, has provided some property or service to the second party under the assumption that the second party will return an equivalent property and service.
Personal creditors are those who lend money to friends or family. Real creditors, like banks or finance corporations, and borrowers frequently have legal agreements that give the lender certain rights.
Personal or real creditors can be categorised. Personal creditors are those who lend money to friends or family. Real creditors, like banks or finance corporations, have legal agreements with borrowers that may allow the lender to seize any of the debtor's real property (such as real estate or automobiles) if the loan is not repaid.
Illustrations of Creditors
A documented promissory note for the amount owing will be required of the firm by some creditors, including banks and other lenders that have loaned money to the company. The corporation borrowing the money will record and report the amount owed as Notes Payable if a promissory note is necessary.
- The amount owing is likely to be listed as Accounts Payable or Accrued Liabilities if the creditor is a vendor or supplier who did not demand that the business sign a promissory note.
- Other creditors include the government (who are due taxes), consumers, and staff (who are owed salary and bonuses) (who made deposits or other prepayments).
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