Question

[Ans : 200 calculate Trade Payables Opening Creditors * 1,25,000; Opening Payable 5,000; Purchases 9,50,000; Cash Pu 2. Calculate Trade Payables Turnover Ratio for the year 2020-21 in each of Case 1: Closing Trade Payables 45,000; Net Purchases 3,60,000; Purchases Ret Purchases 90,000. Case 2: Opening Trade Payables 15,000; Closing Trade Payables * 45,000; Net Purchases ?. Sellir Case 3: Closing Trade Payables * 45,000; Net Purchases 3,60,000. le Case 4: Closing Trade Payables (including * 25,000 due to a supplier of machinery) 55.0 Credit Purchases 3,60,000. ns: Trade Payables Turnover Ratio = (1) 6 Times; (2) 12 Times; (3) 8 Times; (4) 12 mashinery has been excluded since he does not arise from the pi in] 13. 20,000. Cash Purchases * 10,80,000. ode Payables Turnover Ratio​

Answer 1

Answer:

Answer:

Case 1

Net Credit Purchases = Net Purchases − Cash Purchases

= 3,60,000 − 90,000

= 2,70,000

Trade Payables Turnover Ratio = Net Credit Purchases/Closing Trade Payables

= 2,70,000/45,000

= 6 times

Case 2

Net Purchases = 3,60,000

Average Trade Payables = Opening Trade Payables + Closing Trade Payables/2

= 15,000 + 45,0002 = 30,000

Trade Payables Turnover Ratio = Net Credit Purchases/Average Trade Payables

= 3,60,000/30,000 = 12 times

Case 3

Trade Payable Turnover Ratio = Net Credit Purchases/Closing Trade Payables

= 3,60,000/45,000

= 8 times

Case 4

Net Credit Payables for Goods = Trade Payables − Creditors for Machinery

= 55,000 − 25,000

= 30,000

Trade Payables Turnover Ratio = Net Credit PurchasesAverage Trade Payables

= 3,60,000/30,000

= 12 times