TOTAL SALES IS RS 4000000 CASH IS 30%THEN CREDIT SALE IS ___
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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
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