Question 87 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 87 Chapter 4 of +2-B

Question 87 Chapter 4 of +2-B

Trade Receivables Turnover Ratio

87. A firm normally has trade Receivables equal to two months’ credit Sales.
During the coming year, it expects Credit Sales of Rs. 7,20,000 spread evenly over the year 12 months.
What is the estimated amount of Trade Receivables at the end of the year?

The solution of Question 87 Chapter 4 of +2-B: –

Debt Collection Period 12 Months
Debtors’ Turnover Ratio
2 12
Debtors’ Turnover Ratio
  = 12
  2
  = 6 Times

 

Trade Receivables Turnover Ratio Credit Sales
Debtors at the end
6 Rs. 7,20,000
Debtors at the end
  = Rs. 7,20,000
    6
Debtors at the end = Rs. 1,20,000

 

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 87 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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