Question 48 Chapter 4 of +2-B

Question 48 Chapter 4 of +2-B

III. Activity Ratios

Trade Receivable Turnover Ratio

48. (Trade Receivable T/O Ratio/Debt Collection Period) From the following particulars, you are required to determine
(a) Trade Receivable turnover ratio
(b) Average age of Trade Receivable.

Credit Sales (Revenue from Operation)₹ 10,00,000 
Trade Receivable Jan. 1₹ 1,50,000 
 Trade Receivable Dec. 31 ₹ 2,50,000 
Days to be taken for a year 365. 

 

The solution of Question 48 Chapter 4 of +2-B: – 

 

Net Credit sales=₹ 10,00,000
Trade Receivable Turnover Ratio=Net Credit annual sales
Average trade receivable
   
Trade Receivable Turnover Ratio=₹ 10,00,000
₹ 2,00,000*
   
 =5 Times
   
Average collection period=Number of days
  Trade Receivable Turnover ratio
   
 =365
  5
   
 =73 Days
Average Trade Receivable=Opening Trade Receivable + Closing Trade Receivable
2
 =₹ 1,50,000 + ₹ 2,50,000
2
 =₹ 4,00,000
2
Average trade receivable=₹ 5,00,000

 

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

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