Question 50 Chapter 4 of +2-B

Question 50 Chapter 4 of +2-B

III. Activity Ratios

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 1,00,00050,000

 

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

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

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