Question 46 Chapter 4 of +2-B – USHA Publication 12 Class

Question 46 Chapter 4 of +2-B

Question 46 Chapter 4 of +2-B

Free Accounting book Solution - Class 11 and Class 12

Trade Receivable Turnover Ratio

46. (Trade Receivable T/O Ratio/Average Trade Receivable) A business firm made credit sales of (Revenue from Operation) ₹ 4,20,000 during the financial year. If the collection period is 60 days and the year is assumed to be of 360 days. Calculate (i) Trade receivable turnover ratio (ii) Average Debtors.

 

The solution of Question 46 Chapter 4 of +2-B: – 

 

Trade Receivable Turnover Ratio = Number of days
Average Collection Period
     
Trade Receivable Turnover Ratio = 360
60
     
  = 6 times
Average collection period = Net Credit Sales
Average Trade Receivable
     
  = ₹ 4,20,000
Average Trade Receivable
     
Average Trade Receivable = ₹ 4,20,000
6
     
  = ₹ 70,000

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

Leave a Reply

Your email address will not be published. Required fields are marked *