Trade Payables turnover ratio of a Company is 5 times. What will be the impact of ‘Credit purchase’ of Rs. 50,000 on this ratio? State with reason. Post category:Accountancy Reading time:1 mins read SOLUTION The ratio will decrease because of equal increase in credit purchase and closing trade payables. Please Share This Share this content Opens in a new window Twitter Opens in a new window Facebook Opens in a new window Google+ Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostWhat will be the impact of ‘Payment to Trade Payables’ on Trade Payables turnover ratio? State with reason. Next PostWhat will be the impact of increase in Current liabilities on Working Capital turnover ratio? State with reason. You Might Also Like What are Common Size Statements? October 1, 2022 What is Working Capital? October 3, 2022 X and Y are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April, 2019, they admit Z as a partner for 1/5th share in profits. On that date, there was a balance of Rs. 1,50,000 in General Reserve and a debit balance of Rs. 20,000 in the Profit and Loss Account of the firm. Pass necessary Journal entries regarding adjustment of reserve and accumulated profit/loss. August 1, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
X and Y are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April, 2019, they admit Z as a partner for 1/5th share in profits. On that date, there was a balance of Rs. 1,50,000 in General Reserve and a debit balance of Rs. 20,000 in the Profit and Loss Account of the firm. Pass necessary Journal entries regarding adjustment of reserve and accumulated profit/loss. August 1, 2022
