CUET UG 2025 — Accountancy Financial Statements

Trade Payable Turnover Ratio = $\frac{\text{Net Credit Purchases}}{\text{Average Trade Payables}}$Average Trade PayablesNet Credit Purchases​

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Calculating Trade Payables:

Trade Payables include both Creditors and Bills Payable.

Trade Payables = Creditors + Bills Payable
Trade Payables = 90,000 + 52,000 = 1,42,000

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Net Credit Purchases = 4,20,000 (given)

Trade Payable Turnover Ratio = $\frac{4,20,000}{1,42,000}$1,42,0004,20,000​

= 2.9577...

= 2.96 times (rounded off to nearest value)

The correct answer is Option 2: 2.96 times