Question 43 Chapter 4 of +2-B

Question 43 Chapter 4 of +2-B

III. Activity Ratios

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
2
   
 =₹ 90,000 + ₹ 96,000
 2
   
Average Inventory=₹ 93,000
Net Credit annual sales=₹ 4,65,000
Trade Receivable Turnover Ratio=₹ 4,65,000
₹ 40,000
   
Trade Receivable Turnover Ratio=5Times

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

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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

2 Book 3 min 225x300 - Question 43 Chapter 4 of +2-B  - USHA Publication 12 Class
T.S. Grewal’s Analysis of Financial Statements

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