Calculate the creditor's turnover ratio from the following data:
Credit purchase during the year = $R s . 12, 00, 000$
(Creditor + bills payables) in the beginning of year = $R s . 4, 00, 000$
(Creditor + bills parables) at the end of year = $R s . 2, 00, 000$

6 times

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4 times

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2 times

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5 times

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Solution

The correct option is D 4 times
Average accounts payable = (Rs. 4,00,000 + Rs. 2,00,000)/2
= Rs. 3,00,000
Credit turnover ratio = Net credit purchases/Average accounts payable
= Rs. 12,00,000/Rs. 3,00,000
= 4 Times

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Similar questions

Company A reported annual purchases on credit of Rs 1,23,555 and returns of Rs10,000 during the year ended December 31, 2017. Trade payables at the beginning and end of the year were Rs 12,555 and Rs 25,121, respectively. Calculate trade payables turnover ratio.

Calculate Trade Payables Turnover Ratio from the following information :

$\begin{matrix} Rs. Credit Purchases during the year & 6, 20, 000 Purchase Returns (Out of credit purchase) & 20, 000 Opening Creditors & 1, 00, 000 Closing Creditors & 1,40,000 Opening Bills Payable & 25,000 Closing Bills Payable & 35,000 \end{matrix}$

Asertain the appropriate missing figures by preparing Total Creditors Account from the following information :
Creditors as on March 31, 2018 Rs. 6,000,
Creditors as on March 31, 2017 Rs. 36,000,
Cash paid to creditors Rs. 1,04,400,
Discount allowed by creditors Rs 2,000,
Purchase return Rs. 2,000,
Bills payables accepted Rs. 34,000,
Cheques issued to creditors Rs. 20,000,
Bills receivables endorsed in favour of creditors Rs. 40,000 out of which $25 %$ bills were dishonoured.

Q. Question : The following information is given:

	(Rs)
Opening Creditors	$60, 000$
Cash paid to Creditors	$30, 000$
Closing Creditors	$36, 000$
Returns Inward	$13, 000$
Bill matured	$27, 000$
Bill dishonoured	$8, 000$
Purchase return	$12, 000$
Discount allowed	$5, 000$

Calculate credit purchases during the year.

Q. Question: From the following, calculate the number of bills accepted during the year.

	(Rs)
Bills payable as on April 1, 2005	$1, 80, 000$
Bills payable as on March 31, 2006	$2, 20, 000$
Bills payable dishonoured during the year	$28, 000$
Bills payable honoured during the year	$50, 000$

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Calculate the creditor's turnover ratio from the following data:Credit purchase during the year = Rs.12,00,000(Creditor + bills payables) in the beginning of year = Rs.4,00,000(Creditor + bills parables) at the end of year = Rs.2,00,000

The correct option is D 4 timesAverage accounts payable = (Rs. 4,00,000 + Rs. 2,00,000)/2 = Rs. 3,00,000Credit turnover ratio = Net credit purchases/Average accounts payable = Rs. 12,00,000/Rs. 3,00,000 = 4 Times

Calculate the creditor's turnover ratio from the following data:
Credit purchase during the year = $R s . 12, 00, 000$
(Creditor + bills payables) in the beginning of year = $R s . 4, 00, 000$
(Creditor + bills parables) at the end of year = $R s . 2, 00, 000$

The correct option is D 4 times
Average accounts payable = (Rs. 4,00,000 + Rs. 2,00,000)/2
= Rs. 3,00,000
Credit turnover ratio = Net credit purchases/Average accounts payable
= Rs. 12,00,000/Rs. 3,00,000
= 4 Times