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Question 99 Chapter 4 of +2-B
Miscellaneous (Analytical Questions)
99. (Opening Trade Receivable & Closing Trade Receivable) Calculate the amount of Opening Trade Receivable and Closing Trade Receivable from the following figures:
Trade Receivable Turnover Ratio 4 times, Cost of Goods Sold (Cost of Revenue from Operation) ₹ 6,40,000, Gross Profit Ratio 20%, Closing Trade Receivable were ₹ 20,000 more than at the beginning, Cash Sales (Revenue from Operation) being 331/3 0⁄0% of Credit Sales.
| Trade Receivable Turnover Ratio | = | Annual Credit Sales |
| Average Trade Receivable | ||
| Sales | = | Cost of goods sold + Gross Profit |
| Let assume | ||
| Selling Price | = | ₹ 100 |
| Gross Profit | = | ₹ 20 |
| Cost Price | = | ₹ 80 |
| Cost of goods sold | = | ₹ 6,40,000 |
| Total Sales | = | 100 x ₹ 6,40,000 |
| 80 | ||
| = | ₹ 8,00,000 | |
| Total Sales | = | Cash Sales + Credit Sales |
| Let credit Sales | = | x |
| ₹ 8,00,000 | = | 1 | x | + | x |
| 3 | |||||
| = | |||||
| = | x + 3x | ||||
| 3 | |||||
| = | x + 3x | ||||
| 3 | |||||
| = | 4 | x | |||
| 3 | |||||
| = | 4 | x | ₹ 8,00,000 | ||
| 3 | |||||
| = | ₹ 6,00,000 |
| Average Trade Receivable | ||
| Let assume Opening Trade Receivable | = | x |
| Closing Trade Receivable | = | x + ₹ 20,000 |
| Average Trade Receivable (4) | = | ₹ 6,00,000 |
| x + (x + ₹ 20,000) | ||
| 2 | ||
| 4x + 4x + ₹ 80,000 | = | ₹ 12,00,000 |
| 8x | = | ₹ 12,00,000 - ₹ 80,000 |
| 8x | = | ₹ 11,20,000 |
| x | = | ₹ 11,20,000 |
| 8 | ||
| Opening Trade Receivable | = | ₹ 1,40,000 |
| Closing Trade Receivable | = | x + ₹ 20,000 |
| = | ₹ 1,40,000 + ₹ 20,000 | |
| = | ₹ 1,60,000 |
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.
This guide covers "Question 99 Chapter 4 of +2-B - USHA Publication 12 Class", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to USHA Publication Part 2 volume I.
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