# Question 92 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question No. 92- Chapter No.4 - T.S. Grewal +2 Book Part B

Question 92 Chapter 4 of +2-B

92. From the information given below, calculate Trade Receivables Turnover Ratio:
Credit Revenue from Operations, i.e., Credit Sales Rs. 8,00,000; Opening Trade Receivables Rs. 1,20,000; and Closing Trade Receivables Rs. 2,00,000.
State giving reason, which of the following would increase, decrease or not change Trade Receivables Turnover Ratio:
(i) Collection from Trade Receivables Rs. 40,000.
(ii) Credit Revenue from Operations, i.e., Credit Sales Rs. 80,000.
(iii) Sales Return Rs. 20,000.
(iv) Credit Purchase Rs. 1,60,000.

### The solution of Question 92 Chapter 4 of +2-B: –

 = Rs. 1,20,000 + Rs. 2,00,000 2 = Rs. 1,60,000 Trade Receivables Turnover Ratio = Net Credit Sales Average Trade Receivable = Rs. 8,00,000 Rs. 1,60,000 = 5 Times

 Transactions Impact on Trade Receivables Turnover Ratio Reason Collection from Trade Receivables Rs.40,000. Increase The amount of Closing Trade Receivable is decrease and no change in Net credit Sales. (ii) Credit Revenue from Operations, i.e.,Credit Sales Rs. 80,000. Decrease There will be an increase in both Net credit sales and average trade receivables with closing trade receivables. (iii) Sales Return Rs. 20,000. Increase There will be a decrease in both Net credit sales and average trade receivables. (iv) Credit Purchase Rs. 1,60,000. No Change The amounts of both net credit sales and average trade sales.

Balance Sheet: Meaning, Format & Examples

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