Read the passage carefully and answer the next five questions (value in fraction is to be rounded off to the nearest value).
| Particulars | Amount (₹) |
| Revenue from operations | 8,75,000 |
| Creditors | 90,000 |
| Bills receivable | 48,000 |
| Bills payable | 52,000 |
| Purchases | 4,20,000 |
| Trade debtors | 59,000 |
Trade payable turnover ratio is-
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 2.96 times
The trade payables turnover ratio compares credit purchases with trade payables (creditors + bills payable). No credit purchases are given, so the whole purchases are taken.
Trade payables = Rs. 90,000 + Rs. 52,000 = Rs. 1,42,000
Trade Payables Turnover Ratio = Rs. 4,20,000 ÷ Rs. 1,42,000
= 2.96 times
NCERT (2026-27 edition):
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