Question 90 Chapter 4 of +2-B
Table of Contents
Trade Receivables Turnover Ratio
90. From the following information, calculate Opening and Closing Trade
Receivables, if Trade Receivables Turnover Ratio is 3 Times:
I Cash Revenue from Operations is 1/3rd of Credit Revenue from Operations.
II Cost of Revenue from Operations is 3,00,000.
III Gross Profit is 25% of the Revenue from Operations.
IV Trade Receivables at the end are 3 Times more than that of in the beginning.
The solution of Question 90 Chapter 4 of +2-B: –
| Trade Receivables Turnover Ratio | = | Credit Revenue from Operations |
| Average Trade Receivable |
| 3 | = | Rs. 3,00,000 |
| Average Trade Receivable | ||
| = | Rs. 3,00,000 | |
| 3 | ||
| Average Trade Receivable | = | Rs. 1,00,000 |
| Average Trade Receivable | = | Opening Trade Receivable + Closing Trade Receivable |
| 2 |
| Rs. 1,00,000 | = | x + 4x |
| 2 | ||
| Rs. 2,00,000 | = | 5x |
| 5x | Rs. 2,00,000 | |
| = | Rs. 2,00,000 | |
| 5 | ||
| X | = | Rs. 40,000 |
| Opening Trade Receivables | = | Rs. 40,000 |
| Closing Trade Receivables | = | Rs. 40,000 x 4 |
| = | Rs. 1,60,000 |
| Revenue from Operations | = | Rs. 3,00,000 | + | 25 | x | Rs.3,00,000 |
| 75 | ||||||
| = | Rs. 4,00,000 |
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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)
- 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)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
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
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