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If total sales are Rs. 1,00,000 cash sales included in total sales Rs. 20,000, sales back Rs. 7,000. Total debtors for sale as on 31st March, 1993 Rs. 9,000, and bills receivable as on 31st March, 1993 is only Rs. 2,000. The average payout period would be for the year 1992 - 93.

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Correct Answer: Option D
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Nayem Uddin
Nayem Uddin 2 years ago
Here Corrected Question would be Average collection period.

Solution:
Net Sales= Total Sales-Cash Sales Included-Sales Return
=100,000-20,000-7,000
=73,000

Average Collection Period= 365* (Average Accounts Receivables/Net Sales)
here Given Total debtors 9,000 & bills receivables 2,000

Average Receivables=9,000+2,000
=11,000
Now Average Collection Period= 365*(11,000/73,000)
= 55 Days