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Question 81 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 81 Chapter 4 of +2-B
Question No. 81- Chapter No.4 - T.S. Grewal +2 Book Part B

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Question 81 Chapter 4 of +2-B

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Interest Coverage Ratio

81.Closing Trade Receivables Rs. 1,00,000; Cash Sales being 25% of Credit
Sales; Excess of Closing Trade Receivables over Opening Trade Receivables Rs. 40,000; Revenue from Operations, i.e., Net Sales Rs. 6,00,000.
Calculate the Trade Receivables Turnover Ratio.

 

The solution of Question 81 Chapter 4 of +2-B: –

Credit Sales=X

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Cash Sales=Xx25=25x
100100

Total Sales = Cash Sales + Credit Sales

Rs. 6,00,000=Xx25x+X
100
Rs. 6,00,000 x 100=25x X 100
Rs. 6,00,00,000=125x

 

XRs. 6,00,00,000
125
Credit Sales=Rs. 4,80,000

 

Closing Trade Receivables=Opening Trade Receivables + 40,000
Rs. 1,00,000=Opening Trade Receivables + 40,000
 =Rs. 1,00,000 – Rs.40,000
Opening Trade Receivables=Rs. 60,000

 

Average Trade ReceivableOpening Trade Receivable + Closing Trade Receivable
2

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Average Trade ReceivableRs. 1,00,000 + Rs. 60,000
2
 =Rs. 80,000

 

Inventory Turnover RatioCredit Sales
Average Trade Receivable
Inventory Turnover RatioRs. 4,80,000
Rs. 80,000
 =6 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)

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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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