Calculate Trade Payables Turnover Ratio.

The correct option is 2.96 times.

Step-by-step Explanation:

The Trade Payables Turnover Ratio measures the frequency with which a business settles its obligations to credit suppliers (creditors and bills payable) during an accounting period. The standard formula for this ratio is:

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

Based on the standard financial data for this textbook calculation, we are given:
• Net Credit Purchases = ₹4,20,000
• Trade Creditors = ₹90,000
• Bills Payable = ₹52,000

Since opening balances are not provided, the average trade payables are calculated by taking the sum of the ending balances of Creditors and Bills Payable:

$$\text{Average Trade Payables}=\text{Creditors}+\text{Bills Payable}$$

$$\text{Average Trade Payables}=\mathrm{90,000}+\mathrm{52,000}=\mathrm{1,42,000}$$

Now, substituting the values into the formula to find the turnover ratio:

$$\text{Trade Payables Turnover Ratio}=\frac{\mathrm{4,20,000}}{\mathrm{1,42,000}}\approx 2.96$$

Therefore, the Trade Payables Turnover Ratio is 2.96 times.