| Particulars | 1st April, 2018 Amount (Rs.) | 31st March, 2019 Amount (Rs.) |
| Sundry Creditors | 1,50,000 | 4,50,000 |
| Bills Payable | 50,000 | 1,50,000 |
Total Purchases Rs. 21,00,000; Purchases Return Rs. 1,00,000; Cash Purchases Rs. 4,00,000.
SOLUTION
| Average Trade Payables | Opening Creditors & B/P + Closing Creditors & B/P2 |
| = 1,50,000 + 50,000 + 4,50,000 + 1,50,0002 | |
| = Rs. 4,00,000 |
| Net Credit Purchases | Total Purchases – Purchases Return – Cash Purchases |
| = 21,00,000 – 1,00,000 – 4,00,000 = Rs. 16,00,000 |
| Trade Payables Turnover Ratio | Net Credit Purchases Average Trade Payables |
| = 16,00,000 / 4,00,000 = 4 times |
| Average Debt Payment Period | 12 / Trade Payable Turnover Ratio |
| = 12 / 4 = 3 months |