# 12th | Volume 3 | Chapter:4 | Question No. 96 to 100 | Accounting Ratio | Ts grewal Accounts Solution 2022-2023

#### Question 96:

Calculate Trade Payables Turnover Ratio and Average Debt payment Period from the following information:

 1st April, 2020  ` 31st March, 2021  ` Sundry Creditors 1,50,000 4,50,000 Bills Payable 50,000 1,50,000

Total Purchases  ` 21,00,000; Purchases Return
` 1,00,000; Cash Purchases  ` 4,00,000.

#### Question 97:

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
=
` 9,50,000 –  ` 1,00,000 –  ` 45,000 =  ` 8,05,000

#### Question 98:

Calculate Trade Payables Turnover Ratio for the year 2020-21 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.

Case 1

Net Credit Purchases = Net Purchases − Cash Purchases

= 3,60,000 − 90,000

= 2,70,000

= 2,70,000/45,000

= 6 times

Case 2

Net Purchases = 3,60,000

= 15,000 + 45,000/2 = 30,000

= 3,60,000/30,000 = 12 times

Case 3

= 3,60,000/45,000

= 8 times

Case 4

Net Credit Payables for Goods = Trade Payables − Creditors for Machinery

= 55,000 − 25,000

= 30,000

= 3,60,000/30,000

= 12 times

#### Closing Trade Payables `5,40,000, Net purchases `43,20,000, Cash purchases `10,80,000. Calculate Trade Payables Turnover Ratio

Trade payable turnover ratio =32,40,000 / 5,40,000= 6 Times

Credit purchases= net purchases - cash purchases

32,40,000 = 43,20,000- 10,80,000

#### Question 100:

From the following information, calculate Opening and Closing trade payable:
Cash purchases 25% of total Purchases, Revenue from operation
`3,00,000, Gross profit 25% on revenue from Operations, Opening Inventory ` 75,00,000, Closing Inventory  `150,000, Trade Payables turnover Ratio 3 times, Closing Trade Payables were `75,000 in excess of opening trade payables

#### Cost of revenue from operation

= revenue from operation - gross profit

=3,00,000 -( 25% of revenue from operations)

= 3,00,000 -( 25% of 3,00,000)

= 3,00,000 - 75,000

Cost of revenue from operation

=2,25,000

2.

Total purchases

Total purchases

= cost of revenue + closing inventory - opening inventory

= 25,000 + 15,0000 - 75,000

= 3,00,000

3.

Net credit purchases

= total purchases - Cash purchases

= 3,00,000 - 25% of 3,00,000

3,00,000 - 75,000

Net credit purchases

= 2,25,000

4.

3

3x + 3 X + 2,25,000

6x + 2,25,000

6x =

X =

X=

= net credit purchases / average trade payable

= 225,000/ X + X + 7500/2

= 4,50,000

= 4,50,000

4,50,000 -2,25,000

2,25,000/6