Read the following information carefully and answer the next 5 questions: PARTICULARS AMOUNT (₹) Revenue from operations 8,75,000 Creditors 90,000 Bills Receivables 48,000 Bills Payables 52,000 Purchases 4,20,000 Trade debtors 59,000

Calculate average payment period.

123 days 121 days 132 days 133 days

123 days

The correct answer is option 1- 123 days. Average payment period = 365 / Trade payables turnover ratio                                      = 365/ 2.96                                      = 123.3 or 123 days