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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Closing Trade Receivables ₹90,000, Revenue from Operations ₹7,20,000, Cash Revenue from Operations ₹1,80,000, Provision for Doubtful Debts ₹8,000. Calculate the Trade Receivables Turnover Ratio.
Credit Revenue from Operations = Revenue from Operations − Cash Revenue from Operations = 7,20,000 − 1,80,000 = ₹5,40,000
Trade Receivables Turnover Ratio = Credit Revenue from Operations ÷ Trade Receivables = 5,40,000 ÷ 90,000 = 6 times
Note: Only the closing balance of Trade Receivables is given (no opening balance), so it is used directly in place of an average.
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.98 - 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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