Question

period
High turnover ratio or shorter payment period shows the avalduly Ul less credit
credit period. This boosts up the credit worthiness of the enterprise. A low ratio of
or early payments. A high ratio also indicates that the enterprise is not availing full
longer
payment period indicates that creditors are not paid in time or increased credit period.
Illustration 89.
From the following particulars taken from the books of Tata Press Ltd., calculate Trade
Payables Turnover Ratio and Average Payable Period (in days):
Creditors at the end of the Year
Total Purchases
Cash Purchases
*8,50,000
1,00,000
*50,000
1,60,000
1,20,00
Creditors in the Beginning
Purchases Return
Solution:
= 5 Times
Trade Payables Turnover Ratio
Net Credit Purchases
Average Trade Payables
* 7,00,000
*1,40,000
Average Trade Payables
X 365
Net Credit Purchases
1,40,000
*7,00,000
x 365 = 73 Days
.
Average Payable Period
5
365​

Answer 1

Answer:

$\huge{\underline{\sf{\orange{Answer -}}}}$

$let \: the \: whole \: quantity \: = x$

$A/Q$

$5\% \: of \: x = 600 \\ \\ = > \frac{5 \times x}{100} = 600 \\ \\ \\= > 5 \times x = 600 \times 100 \\ \\ \\ \ \: = > x = \frac{600 \times 100}{5} \\ \\ \: \\ = > x = \frac{120 \times 100}{1} \: \\ \\ x = 12000$

Therefore, The whole quantity = 12000