Question

Calculate Debtors Turnover Ratio from the following particular :
Opening Debtors 40,000
Credit Sales 2,60,000
Goods returned by Debtors 10,000
Cash received from Debtors 2,20,000
Discount Allowed 10,000​

Answer 1

Answer:

Debtor Turnover Ratio =

Credit Sales ÷ Average debtors

DTR = 260000/40000

= 6.5 times.

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