Question 47 Chapter 4 of +2-B
Table of Contents
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: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
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