# Question 47 Chapter 4 of +2-B – USHA Publication 12 Class

Q-47- CH-4 Book 2 - Usha Pub. +2 Book 2020 - Solution

Question 47 Chapter 4 of +2-B

Trade Receivable Turnover Ratio

47. (Calculation of Trade Receivable at the beginning & at the end) ₹ 1,75,000 is the net credit sales (Revenue from Operation) of a concern during the year. If revenue from operation turnover is 8 times, calculate trade receivable in the beginning and at the end of the year. Trade receivable at the end is ₹ 7,000 more than at the beginning.

## The solution of Question 47 Chapter 4 of +2-B: –

 Trade Receivable Turnover Ratio = Net Credit Sales Average Trade Receivable 8 = Net Credit Sales Average Trade Receivable Average Trade Receivable = Net Credit Sales Trade Receivable Turnover Ratio = ₹ 1,75,000 8 = ₹ 21,875
 Average Trade Receivable = Opening Trade Receivable + Closing Trade Receivable 2 Let assume Opening trade receivable = x Closing trade receivable = x + ₹ 7,000
 ₹ 21,875 = x + (x + ₹ 7,000) 2 ₹ 21,875 x 2 = x + (x + ₹ 7,000) ₹ 43,750 = 2x + ₹ 7,000) ₹ 43,750 – ₹ 7,000 = 2x ₹ 36,750 = 2x x = ₹ 36,750 2 = ₹ 18,375 Closing trade receivable = ₹ 18,375 + ₹ 7,000 = ₹ 25,375

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