Question

From the following details, calculate Debtors Turnover Ratio :
Total Sales for the year ₹1,75,000,
Cash Sales 20% of Total Sales,
Sales Returns out of Credit Sales ₹10,000
Sundry Debtors :
Opening Balance ₹8,000
Closing Balance ₹12,000
[Ans. 13 times)

Solve it Quickly!

Answer 1

Answer:

Explanation:

Debtor Turnover ratio =Credit Sales/Average debtor

Total sales                    = 175000.00

cash sales 20% means=35000.00

Credit sales                  =140000.00

Sales return                 =   10000.00

Net credit sales           = 130000.00

Average debtors = opening debtors + closing debtors /2

                            =8000+12000=20000/2=10000

Debtors turnover ratio=130000/10000=13 times

means debtors turnover in the period is 13 times