Calculate Trade payables Turnover Ratio from the following information-Purchases - 1-00-000- Purchases Return - 45-000 -

Net Credit Purchases = Purchases – Cash Purchases – Purchase Return nbsp; nbsp; nbsp; nbsp; nbsp; nbsp; nbsp; nbsp; nbsp; nbsp; nbsp; n ...

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Standard XII

Accountancy

Stationary/ Food Supplies

Calculate Tra...

Question

Calculate Trade payables Turnover Ratio from the following information:
Opening Creditors ₹ 1,25,000; Opening Bills Payable ₹ 10,000; Closing Creditors ₹ 90,000; Closing bills Payable ₹ 5,000; Purchases ₹ 9,50,000; Cash Purchases ₹ 1,00,000; Purchases Return ₹ 45,000.

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Solution

Net Credit Purchases = Purchases – Cash Purchases – Purchase Return
= Rs 9,50,000 – Rs 1,00,000 – Rs 45,000 = Rs 8,05,000

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Calculate Trade Payables Turnover Ratio for the year 2018-19 in each of the alternative cases:
Case 1 : Closing Trade Payables ₹ 45,000; Net Purchases ₹ 3,60,000; Purchases Return ₹ 60,000; Cash Purchases ₹ 90,000.
Case 2 : Opening Trade Payables ₹ 15,000; Closing Trade Payables ₹ 45,000; Net Purchases ₹ 3,60,000.
Case 3 : Closing Trade Payables ₹ 45,000; Net Purchases ₹ 3,60,000.
Case 4 : Closing Trade Payables (including ₹ 25,000 due to a supplier of machinery) ₹ 55,000; Net Credit Purchases ₹ 3,60,000.

Q. From the following information, calculate Inventory Turnover Ratio; Operating Ratio and Working Capital Turnover Ratio:
Opening Inventory ₹ 28,000; Closing Inventory ₹ 22,000; Purchases ₹ 46,000; Revenue from Operations, i.e., Net Sales ₹ 80,000; Return ₹10,000; Carriage Inwards ₹ 4,000; Office Expenses ₹ 4,000; Selling and Distribution Expenses ₹ 2,000; Working Capital ₹ 40,000.

Q. Revenue from Operations: Cash Sales ₹ 5,00,000; Credit Sales ₹ 6,00,000; Sales Return ₹ 1,00,000. Current Assets ₹ 3,00,000; Current Liabilities ₹ 1,00,000. Calculate Working Capital Turnover Ratio.

Calculate Trade Payables Turnover Ratio from the following information :

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

Q. Closing Trade Receivables ₹ 1,00,000; Cash Sales being 25% of Credit Sales; Excess of Closing Trade Receivables over Opening Trade Receivables ₹ 40,000; Revenue from Operations, i.e., Net Sales ₹ 6,00,000. Calculate Trade Receivables Turnover Ratio.

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Calculate Trade payables Turnover Ratio from the following information: Opening Creditors ₹ 1,25,000; Opening Bills Payable ₹ 10,000; Closing Creditors ₹ 90,000; Closing bills Payable ₹ 5,000; Purchases ₹ 9,50,000; Cash Purchases ₹ 1,00,000; Purchases Return ₹ 45,000.

Net Credit Purchases = Purchases – Cash Purchases – Purchase Return = Rs 9,50,000 – Rs 1,00,000 – Rs 45,000 = Rs 8,05,000

Calculate Trade payables Turnover Ratio from the following information:
Opening Creditors ₹ 1,25,000; Opening Bills Payable ₹ 10,000; Closing Creditors ₹ 90,000; Closing bills Payable ₹ 5,000; Purchases ₹ 9,50,000; Cash Purchases ₹ 1,00,000; Purchases Return ₹ 45,000.

Net Credit Purchases = Purchases – Cash Purchases – Purchase Return
= Rs 9,50,000 – Rs 1,00,000 – Rs 45,000 = Rs 8,05,000