Question

• Creditors 90,000/-, bills payable 60,000/- credit purchase 6,50,000/-, Returns outwards 50,000/- Returns inyards 80,000/-. Creditors turnover ratio will be​

Answer 1

Correct option is

B

4 times

Average accounts payable = (Rs. 4,00,000 + Rs. 2,00,000)/2

= Rs. 3,00,000

Credit turnover ratio = Net credit purchases/Average accounts payable

= Rs. 12,00,000/Rs. 3,00,000

= 4 Times

Answer 2

ANSWERS:

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