A) 5.12 times
B) 5.16 times
C) 5.21 times
D) 5.25 times
Correct Answer: C
Solution :
| [c] 5.21 times |
| Hint: Net Credit Purchase = Total Purchase - Cash Purchase - Purchase Return |
| = 1,70,000 - 16,000 - 8,000 = Rs. 1,46,000 |
| Average Trade Payable = \[\frac{\operatorname{Opening} Trade Payable + Closing Trade Payable}{2}\] |
| \[=\frac{24,000 + 32,000}{2}\]=Rs. 28,000 |
| Creditors Turnover Ratio =\[\frac{Net Credit Purchase}{Average Trade Payable}\] |
| =\[\frac{1,46,000}{28,000}\]= 5.21 times |
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