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

Question 80 Chapter 4 of +2-B

Question 80 Chapter 4 of +2-B

Interest Coverage Ratio

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

  31st March 2018 31st March 2019
Sundry Debtors 28,000 25,000
Bills Receivable 7,000 15,000
Provision for Doubtful Debts 2,800 2,500

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

 

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

 

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

 

 

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)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

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)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

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

2 Book 3 min 225x300 - Question 80 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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