Question

opening debtors 10000 cash received from debtors70000, closing debtor 15000, sales return 5000 . calculate debtor turn over ratio?​

Answer 1

Answer:

Average debtors = (Rs. 40,000 + Rs. 1,20,000)/2 = Rs. 80,000

Cash sales = 20% of total sales

= Rs. 4,00,000 x 20%

= Rs. 80,000

Net credit sales = Total sales - Cash sales

= Rs. 4,00,000 - Rs. 80,000

= Rs. 3,20,000

Debtors turnover ratio = Net credit sales/Average debtors

= Rs. 3,20,000/Rs. 80,000

= 4 Times