Question 50 Chapter 4 of +2-B
Table of Contents
Trade Receivable Turnover Ratio
50. (Trade Receivable T/O Ratio for Two Years) Compute the Trade receivable Turnover ratio from the following :
| 2016 Year I (₹) | 2017 Year II (₹) | |
| Gross Sales (Revenue from Operation) | ₹ 9,00,000 | 7,50,000 |
| Trade Receivable at the beginning of the year | ₹ 83,000 | 1,17,000 |
| Trade Receivable at the end of the year | ₹ 1,17,000 | 83,000 |
| Sales Returns | 1,00,000 | 50,000 |
The solution of Question 50 Chapter 4 of +2-B: –
Year 2016
| Trade Receivable Turnover Ratio | = | Net Credit annual sales |
| Average trade receivable | ||
| Net Credit Sales | = | Total Credit Sales – Sales Return |
| = | ₹ 9,00,000 – ₹ 1,00,000 | |
| = | ₹ 8,00,000 | |
| Average Trade Receivable | = | Trade Receivable in the beginning + Trade Receivable at the end |
| 2 |
| = | ₹ 83,000 + ₹ 1,17,000 | |
| 2 | ||
| Average trade receivable | = | ₹ 1,00,000 |
| Trade Receivable Turnover Ratio | = | ₹ 8,00,000 |
| ₹ 1,00,000 | ||
| = | 8 times |
Year 2017
| Trade Receivable Turnover Ratio | = | Net Credit annual sales |
| Average trade receivable | ||
| Net Credit Sales | = | Total Credit Sales – Sales Return |
| = | ₹ 7,50,000 – ₹ 50,000 | |
| = | ₹ 7,00,000 | |
| Average Trade Receivable | = | Trade Receivable in the beginning + Trade Receivable at the end |
| 2 |
| = | ₹ 1,17,000 + ₹ 83,000 | |
| 2 | ||
| Average trade receivable | = | ₹ 1,00,000 |
| Trade Receivable Turnover Ratio | = | ₹ 7,00,000 |
| ₹ 1,00,000 | ||
| = | 7 times |
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
