Question 94 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 94 Chapter 4 of +2-B

Question 94 Chapter 4 of +2-B

Trade Receivables Turnover Ratio

94. Calculate Trade payables Turnover Ratio from the following information:Opening Creditors Rs. 1,25,000; Opening Bills Payable Rs. 10,000; Closing Creditors Rs. 90,000; Closing bills Payable Rs. 5,000; Purchases Rs. 9,50,000; Cash Purchases Rs. 1,00,000; Purchases Return Rs. 45,000.

The solution of Question 94 Chapter 4 of +2-B: –

Net Credit Purchases = Purchases – Cash Purchases – Purchase Return
  = Rs. 9,50,000 – Rs. 1,00,000 – Rs. 45,000
  = Rs. 8,05,000

 

Average Trade Receivable Opening Creditors & BP + Closing Creditors & BP
2
  1,25,000 + 10,000 + 90,000 + 5,000
2
  = Rs. 1,15,000
Trade Receivables Turnover Ratio = Net Credit Sales
    Average Trade Receivable
  = Rs. 8,05,000
Rs. 1,15,000
  = 7 Times

 

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

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