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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
From the given information, calculate (a) Trade Receivables Turnover Ratio, and (b) Current Ratio (CBSE 2024):
| Credit Revenue from Operations | 80,00,000 | 10% Debentures | 12,00,000 |
| Debtors | 25,00,000 | Creditors | 13,00,000 |
| Bills Receivable | 15,00,000 | Bills Payable | 7,00,000 |
| Total Assets | 50,00,000 |
(a) Trade Receivables Turnover Ratio
Average Trade Receivables = Debtors + Bills Receivable = 25,00,000 + 15,00,000 = ₹40,00,000
Trade Receivables Turnover Ratio = Credit Revenue from Operations ÷ Average Trade Receivables = 80,00,000 ÷ 40,00,000 = 2 times
(b) Current Ratio
Current Assets = Debtors + Bills Receivable = ₹40,00,000
Current Liabilities = Creditors + Bills Payable = 13,00,000 + 7,00,000 = ₹20,00,000
Current Ratio = 40,00,000 ÷ 20,00,000 = 2 : 1
(Note: Total Assets is not required for this calculation.)
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 "T.S. Grewal Class 12 Vol 3 Chapter 4 Q.175 - Accounting Ratios", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 4 - Accounting Ratios.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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