{"id":55929,"date":"2024-04-16T00:35:49","date_gmt":"2024-04-16T00:35:49","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=55929"},"modified":"2024-04-16T00:35:49","modified_gmt":"2024-04-16T00:35:49","slug":"net-credit-sales-of-business-was-rs-175000-debtors-turnover-ratio-is-8-times-closing-debtors-were-in-excess-of-opening-debtors-by-rs-7000-opening-debtors-will-be","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/net-credit-sales-of-business-was-rs-175000-debtors-turnover-ratio-is-8-times-closing-debtors-were-in-excess-of-opening-debtors-by-rs-7000-opening-debtors-will-be\/","title":{"rendered":"Net credit sales of business was Rs. 1,75,000. Debtors Turnover ratio is 8 times. Closing debtors were in excess of opening debtors by Rs. 7,000. Opening debtors will be"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Rs. 18,375&#8243; option2=&#8221;Rs. 21,875&#8243; option3=&#8221;Rs. 25,375&#8243; option4=&#8221;None of the above&#8221; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is: A. Rs. 18,375<\/p>\n<p>Debtors Turnover Ratio = Net Credit Sales \/ Average Debtors<\/p>\n<p>Average Debtors = Net Credit Sales \/ Debtors Turnover Ratio<\/p>\n<p>Opening Debtors + Closing Debtors = 2 * Average Debtors<\/p>\n<p>Opening Debtors = 2 * Average Debtors &#8211; Closing Debtors<\/p>\n<p>Opening Debtors = 2 * (175000 \/ 8) &#8211; 7000 = 18375<\/p>\n<p>Here is a brief explanation of each option:<\/p>\n<ul>\n<li>Option A: Rs. 18,375 is the correct answer.<\/li>\n<li>Option B: Rs. 21,875 is incorrect. This is the answer that would be obtained if the closing debtors were equal to the opening debtors. However, the question states that the closing debtors were in excess of the opening debtors by Rs. 7,000.<\/li>\n<li>Option C: Rs. 25,375 is incorrect. This is the answer that would be obtained if the closing debtors were equal to the average debtors. However, the question states that the closing debtors were in excess of the average debtors by Rs. 7,000.<\/li>\n<li>Option D: None of the above is the correct answer.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Rs. 18,375&#8243; option2=&#8221;Rs. 21,875&#8243; option3=&#8221;Rs. 25,375&#8243; option4=&#8221;None of the above&#8221; correct=&#8221;option1&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-55929","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Net credit sales of business was Rs. 1,75,000. Debtors Turnover ratio is 8 times. Closing debtors were in excess of opening debtors by Rs. 7,000. Opening debtors will be<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/net-credit-sales-of-business-was-rs-175000-debtors-turnover-ratio-is-8-times-closing-debtors-were-in-excess-of-opening-debtors-by-rs-7000-opening-debtors-will-be\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Net credit sales of business was Rs. 1,75,000. Debtors Turnover ratio is 8 times. Closing debtors were in excess of opening debtors by Rs. 7,000. Opening debtors will be\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Rs. 18,375&#8243; option2=&#8221;Rs. 21,875&#8243; option3=&#8221;Rs. 25,375&#8243; option4=&#8221;None of the above&#8221; correct=&#8221;option1&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/net-credit-sales-of-business-was-rs-175000-debtors-turnover-ratio-is-8-times-closing-debtors-were-in-excess-of-opening-debtors-by-rs-7000-opening-debtors-will-be\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-16T00:35:49+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Net credit sales of business was Rs. 1,75,000. Debtors Turnover ratio is 8 times. Closing debtors were in excess of opening debtors by Rs. 7,000. Opening debtors will be","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/net-credit-sales-of-business-was-rs-175000-debtors-turnover-ratio-is-8-times-closing-debtors-were-in-excess-of-opening-debtors-by-rs-7000-opening-debtors-will-be\/","og_locale":"en_US","og_type":"article","og_title":"Net credit sales of business was Rs. 1,75,000. Debtors Turnover ratio is 8 times. Closing debtors were in excess of opening debtors by Rs. 7,000. Opening debtors will be","og_description":"[amp_mcq option1=&#8221;Rs. 18,375&#8243; option2=&#8221;Rs. 21,875&#8243; option3=&#8221;Rs. 25,375&#8243; option4=&#8221;None of the above&#8221; correct=&#8221;option1&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/net-credit-sales-of-business-was-rs-175000-debtors-turnover-ratio-is-8-times-closing-debtors-were-in-excess-of-opening-debtors-by-rs-7000-opening-debtors-will-be\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-16T00:35:49+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/net-credit-sales-of-business-was-rs-175000-debtors-turnover-ratio-is-8-times-closing-debtors-were-in-excess-of-opening-debtors-by-rs-7000-opening-debtors-will-be\/","url":"https:\/\/exam.pscnotes.com\/mcq\/net-credit-sales-of-business-was-rs-175000-debtors-turnover-ratio-is-8-times-closing-debtors-were-in-excess-of-opening-debtors-by-rs-7000-opening-debtors-will-be\/","name":"Net credit sales of business was Rs. 1,75,000. 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