Advertisement

Question 88 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 88 Chapter 4 of +2-B
Question No. 88- Chapter No.4 - T.S. Grewal +2 Book Part B

Advertisement

Question 88 Chapter 4 of +2-B

Advertisement

Trade Receivables Turnover Ratio

88. A limited company made Credit Sales of Rs. 4,00,000 during the financial
period. If the collection period is 36 days and year is assumed to be 360 days, calculate:
I. Trade Receivables Turnover Ratio;
II. Average Trade Receivables;
III. Trade Receivables at the end when Trade Receivables at the end are more than that in the beginning by 6,000.

 

The solution of Question 88 Chapter 4 of +2-B: –

Debt Collection Period360
Trade Receivables Turnover Ratio
36360
Trade Receivables Turnover Ratio
 =360
 36
 =10 Times

Advertisement-X

 

(ii)Trade Receivables Turnover RatioNet Credit Sales
Average Trade Receivable
10Rs. 4,00,000
Average Trade Receivable
 =Rs. 4,00,000
  10
Average Trade Receivable=Rs. 40,000

 

(iii) Opening Trade Receivables=X
 =x + 6,000
Average Trade Receivable=Opening Trade Receivable + Closing Trade Receivable
2
Rs. 40,000=X + (x+ Rs. 6,000)
2
Rs. 80,0000=2x + Rs. 6,000
2x=Rs. 80,000 – Rs. 6,000
2x=Rs. 74,000
X=Rs. 74,000
  2
X=Rs. 37,000
Opening Trade Receivables=Rs. 37,000
Closing Trade Receivables=Rs. 37,000 + 6,000
 =Rs. 43,000

 

Balance Sheet: Meaning, Format & Examples

Thanks, Please Like and share with your friends  

Comment if you have any question.

Advertisement-X

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

Advertisement-Y

Advertisement

Advertisement

error: Content is protected !!