Question 94 Chapter 4 of +2-B - T.S. Grewal 12 Class

Question 94 Chapter 4 of +2-B

Trade Receivables Turnover Ratio

94. Calculate Trade payables Turnover Ratio from the following information:Opening Creditors Rs. 1,25,000; Opening Bills Payable Rs. 10,000; Closing Creditors Rs. 90,000; Closing bills Payable Rs. 5,000; Purchases Rs. 9,50,000; Cash Purchases Rs. 1,00,000; Purchases Return Rs. 45,000.

The solution of Question 94 Chapter 4 of +2-B: -

Net Credit Purchases	=	Purchases – Cash Purchases – Purchase Return
	=	Rs. 9,50,000 – Rs. 1,00,000 – Rs. 45,000
	=	Rs. 8,05,000

 

Average Trade Receivable	=	Opening Creditors & BP + Closing Creditors & BP
		2

	=	1,25,000 + 10,000 + 90,000 + 5,000
		2
	=	Rs. 1,15,000
Trade Receivables Turnover Ratio	=	Net Credit Sales
		Average Trade Receivable
	=	Rs. 8,05,000
		Rs. 1,15,000
	=	7 Times

 

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Also, Check out the solved question of previous Chapters: -

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 - Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 - Accounting for Partnership Firms - Fundamentals
• Chapter No. 3 - Goodwill: Nature and Valuation
• Chapter No. 4 - Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 - Admission of a Partner
• Chapter No. 6 - Retirement/Death of a Partner
• Chapter No. 7 - Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 - Company Accounts -  Accounting for Share Capital
• Chapter No. 9 - Company Accounts - Issue of Debentures
• Chapter No. 10 - Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 - Financial Statements of a Company
• Chapter No. 2 - Financial Statement Analysis 
• Chapter No. 3 - Tools of Financial Statement Analysis - Comparative Statements and Common- Size Statements
• Chapter No. 4 - Accounting Ratios
• Chapter No. 5 - Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication