Question

Stovk velocity 8months,debotors velocity 3months,creditors velocity 2mnths gp ratio 25% br 25000 gp 400000 find sales and debotors

Answer 1

Explanation:

It is calculated by dividing the net credit purchases by average creditors.

Creditor Turnover Ratio = Net Credit Purchases / Average Trade Creditor

(or)

Net Credit Purchases / Average

Creditors + Average Bills Payable.

Net credit purchases = Total

purchases – (Cash purchase +

Purchase return)

Total Creditors = [Op.Cr.

Answer 2

$\huge{\mathfrak\red{Answer}}$

Total Creditors= O.p.Cr.

$\huge{\mathfrak\red{Step-by-Step Explanation}}$

It is calculated by dividing the net credit purchases by average creditors.

Creditor Turnover Ratio= Net Credit Purchases / Average Trade Creditor

(or)

Net Credit Purchases / Average

Creditors + Average Bills Payable

Net Credit purchase = Total

Purchase - (Cash Purchase + Purchase return)

Total Credit= O.p.C.p

$\mathfrak\orange{Hope \:it \:is \:Helpful}$