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

Question 86 Chapter 4 of +2-B

Question 86 Chapter 4 of +2-B

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

 

X Rs. 15,00,00,000
25
  = 12,00,000

 

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

 

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

 

Trade Receivable Turnover Ratio Net Credit Sales
Average Trade Receivables
  Rs. 12,00,000
Rs. 3,00,000
Trade Receivable Turnover Ratio = 4 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 86 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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