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Question 86 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 86 Chapter 4 of +2-B
Question No. 86- Chapter No.4 - T.S. Grewal +2 Book Part B

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Question 86 Chapter 4 of +2-B

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Trade Receivables Turnover Ratio

86. Closing Trade Receivables Rs. 4,00,000; Cash Sales being 25% of Credit
Sales; Excess of Closing Trade Receivables over Opening Trade Receivables
Rs. 2,00,000; Revenue from Operations, i.e., Revenue from Operations, i.e., Net Sales Rs. 15,00,000.
Calculate the Trade Receivables Turnover Ratio.

The solution of Question 86 Chapter 4 of +2-B: –

Credit Sales=X

Cash Sales=25% of Credit Sales
Cash Sales=X x25
100
   25x
   100
Total Sales=Cash Sales + Credit Sales 
Rs. 15,00,000=X +25
   100
Rs. 15,00,00,000=125x 

 

XRs. 15,00,00,000
25
 =12,00,000

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Opening Trade Receivables=Closing Trade Receivables − 2,00,000
 =Rs. 4,00,000 − Rs. 2,00,000
 =Rs. 2,00,000

 

Average Credit receivablesOpening Trade Receivable +
Closing Trade Receivable
2
 Rs. 2,00,000 + Rs. 4,00,000
2
 =Rs. 3,00,000

 

Trade Receivable Turnover RatioNet Credit Sales
Average Trade Receivables
 Rs. 12,00,000
Rs. 3,00,000
Trade Receivable Turnover Ratio=4 Times

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Balance Sheet: Meaning, Format & Examples

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Comment if you have any question.

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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