Question

Determine debtors turnover ratio if, closing debtors is rs 40,000, cash sales is 25% of credit sales and excess of closing debtors over opening debtors is rs 20,000"

Answer 1

Answer:

you mean sales of momos 25% credit

Explanation:

yea make momos at your home and sales on the road then people while eat and tikha mirchi chutney then you can earn 40;000

Answer 2

Answer:

4 times

Explanation:

DTR = Credit Sales / Average Debtors

Cash sales = 25% of Credit Sales

Let Credit Sales be X

Cash Sales = Cash Sales + Credit Sales

100000 = 25X/100 + X

125X/100 = 100000

X = (100000 * 100) / 125 = 80000

Closing Debtor = Opening Debtor + 20000

40000 = Opening Debtor + 20000

Opening Debtor = 20000

Average Debtors = (40000+20000)/2 = 30000