Question

questions from the following information, calculate the amount paid to Creditors :
Rs
Sundry Creditors as on 01/04/2016
1,80,000
earned 6000
Returns outwards
7,000
Bills accepted
1,50,000
Credit purchases
2,00,000
Sundry Creditors as on 31/03/2017
1,90,000​ to be paid to creditors​

Answer 1

Answer:

Creditors / Payable Turnover Ratio (or) Creditors Velocity = Net Credit Annual Purchases / Average Trade Creditors.

Trade Creditors = Sundry Creditors + Bills Payable.