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Question 43 Chapter 14 of Class 12 Part – 2 – 2024
Trade Receivable Turnover Ratio
43. (Trade Receivable T/O Ratio) Trade Receivable in the beginning ₹ 90,000; Trade Receivable at the end ₹ 96,000 credit sales during the year ₹ 4,65,000. Calculate trade receivable turnover ratio.
| Trade Receivable Turnover Ratio | = | Net Credit annual sales |
| Average trade receivable |
| Average trade receivable | = | Opening trade receivable + Closing trade receivable |
| 2 | ||
| = | ₹ 90,000 + ₹ 96,000 | |
| 2 | ||
| Average Inventory | = | ₹ 93,000 |
| Net Credit annual sales | = | ₹ 4,65,000 |
| Trade Receivable Turnover Ratio | = | ₹ 4,65,000 |
| ₹ 40,000 | ||
| Trade Receivable Turnover Ratio | = | 5Times |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
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