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Question 80 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 80 Chapter 4 of +2-B
Question No. 80- Chapter No.4 - T.S. Grewal +2 Book Part B

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Question 80 Chapter 4 of +2-B

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Interest Coverage Ratio

80. Calculate Trade Receivables Turnover Ratio from the following information:

 31st March 201831st March 2019
Sundry Debtors28,00025,000
Bills Receivable7,00015,000
Provision for Doubtful Debts2,8002,500

Total Sales Rs. 1,00,000; Sales Return Rs. 1,500; Cash Sales Rs. 23,500

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The solution of Question 80 Chapter 4 of +2-B: –

 

Net Credit Sales=Total Sales − Sales Return − Cash Sales
 =Rs. 1,00,000 − Rs. 1,500 − Rs. 23,500
 =Rs. 75,000

 

Average Trade ReceivableOpening Debtors + Opening Bills Receivable + Closing Debtors + Closing bills Receivable
2
Average Trade ReceivableRs. 28,000 + Rs. 7,000 + Rs. 25,000 + Rs. 15,000
2
 =Rs. 37,500

 

Inventory Turnover RatioNet Credit Sales
Average Trade Receivable
Inventory Turnover RatioRs. 75,000
Rs. 37,500
 =2 Times

 

 

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Balance Sheet: Meaning, Format & Examples

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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statements

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