Question 45 Chapter 4 of +2-B

Question 45 Chapter 4 of +2-B

III. Activity Ratios

Trade Receivable Turnover Ratio

45. (Trade Receivable T/O Ratio & Average Collection Period) From the following particulars, determine trade receivable turnover ratio and average collection period :

Total sales (Revenue from Operation) ₹ 10,00,000
Credit sales ₹ 8,00,000
 Trade Receivable ₹ 1,00,000

 

The solution of Question 45 Chapter 4 of +2-B: – 

 

Net Credit sales=₹ 8,00,000
Average trade receivable=₹ 1,00,000
Trade Receivable Turnover Ratio=Net Credit annual sales
Average Inventory
   
Trade Receivable Turnover Ratio=₹ 8,00,000
₹ 1,00,000
   
 =8 Times
Average collection period=Number of days
Trade Receivable Turnover ratio
   
 =360*
8
   
 =45 Days

*Number of Days in the year assumed to be 360.

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 45 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

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