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

Question No. 80- Chapter No.4 - T.S. Grewal +2 Book Part 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: –