Question 43 Chapter 4 of +2-B - USHA Publication 12 Class

Question 43 Chapter 4 of +2-B

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.

The solution of Question 43 Chapter 4 of +2-B: –

Trade Receivable Turnover Ratio	=	Net Credit annual sales
		Average trade receivable

Average trade receivable	=	Opening trade receivable + Closing trade receivable
Average 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
Trade Receivable Turnover Ratio	=	₹ 40,000

Trade Receivable Turnover Ratio	=	5Times

End of Solution

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