Question 49 Chapter 4 of +2-B
Table of Contents
Trade Receivable Turnover Ratio
49. (Trade Receivable T/O Ratio when Provision for Doubtful Debt is given) ABC Ltd Provides the following information
| Trade Receivable in the beginning | ₹ 10,00,000 |
| Trade Receivable at the end | ₹ 1,50,000 |
| Cash sales during the year (Revenue from Operation) | ₹ 2,50,000 |
| Credit sales during the year (Revenue from Operation) | |
| Return inwards | |
| Provision for bad and doubtful debts |
The solution of Question 49 Chapter 4 of +2-B: –
| Trade Receivable Turnover Ratio | = | Net Credit annual sales |
| Average trade receivable | ||
| Net Credit Sales | = | Total Credit Sales – Sales Return |
| = | ₹ 2,50,000 – ₹ 10,000 | |
| = | ₹ 2,40,000 | |
| Average Trade Receivable | = | Trade Receivable in the beginning + Trade Receivable at the end |
| 2 |
| = | ₹ 50,000 + ₹ 30,000 | |
| 2 | ||
| Average trade receivable | = | ₹ 40,000 |
| Trade Receivable Turnover Ratio | = | ₹ 2,40,000 |
| ₹ 40,000 | ||
| = | 6 times |
| Average Collection Period | = | Number of days in the year |
| Trade Receivable turnover ratio | ||
| Average trade receivable | = | 360 |
| 6 | ||
| Average Collection Period | = | 60 Days |
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
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
