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Question 90 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 90 Chapter 4 of +2-B
Question No. 90- Chapter No.4 - T.S. Grewal +2 Book Part B

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Question 90 Chapter 4 of +2-B

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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: –

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Trade Receivables Turnover RatioCredit Revenue from Operations
Average Trade Receivable
3Rs. 3,00,000
Average Trade Receivable
 =Rs. 3,00,000
 3
Average Trade Receivable=Rs. 1,00,000

 

Average Trade ReceivableOpening Trade Receivable + Closing Trade Receivable
2
Rs. 1,00,000x + 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+25xRs.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)

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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