Question 95 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 95 Chapter 4 of +2-B

Question 95 Chapter 4 of +2-B

Trade Receivables Turnover Ratio

95. Calculate Trade Payables Turnover Ratio for the year 2018-19 in each of the alternative cases:
Case 1: Closing Trade Payables Rs. 45,000; Net Purchases Rs. 3,60,000;
Purchases Return Rs. 60,000; Cash Purchases 90,000.
Case 2: Opening Trade Payables Rs. 15,000; Closing Trade Payables Rs.
45,000; Net Purchases 3,60,000.
Case 3: Closing Trade Payables Rs. 45,000; Net Purchases Rs. 3,60,000.
Case 4: Closing Trade Payables including Rs. 25,000 due to a supplier of
machinery Rs. 55,000; Net Credit Purchases Rs. 3,60,000.

The solution of Question 95 Chapter 4 of +2-B: –

Case I:

Net Credit Purchases = Net Purchases − Cash Purchases
  = Rs. 3,60,000 – Rs. 90,000
  = Rs. 2,70,000

 

Average Trade Receivable Net Credit Purchase
Closing Trade Payables
  Rs. 2,70,000
Rs. 45,000
  = 6 Times

Case II:

Net Credit Purchases = Rs. 3,60,000

Average Trade Receivable Opening Trade payables + Closing Trade Payables
2
  Rs. 15,000 + Rs. 45,000
2
  = Rs. 30,000
Trade Receivables Turnover Ratio = Net Credit Sales
    Average Trade Receivable
  = Rs. 3,60,000
Rs. 30,000
  = 12 Times

Case III:

Trade Receivables Turnover Ratio = Net Credit Sales
Average Trade Receivable
  = Rs. 3,60,000
Rs. 45,000
  = 8 Times

Case IV:

Net Credit Payables = Trade Payables – Creditors for Machinery
  = Rs. 55,000 – Rs. 25,000
  = Rs. 30,000

 

Trade Receivables Turnover Ratio = Net Credit Sales
Average Trade Receivable
  = Rs. 3,60,000
Rs. 30,000
  = 12 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 95 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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