# Question 99 Chapter 4 of +2-B – USHA Publication 12 Class Question 99 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

99. (Opening Trade Receivable & Closing Trade Receivable) Calculate the amount of Opening Trade Receivable and Closing Trade Receivable from the following figures:
Trade Receivable Turnover Ratio 4 times, Cost of Goods Sold (Cost of Revenue from Operation) ₹ 6,40,000, Gross Profit Ratio 20%, Closing Trade Receivable were ₹ 20,000 more than at the beginning, Cash Sales (Revenue from Operation) being 331/3 0⁄0% of Credit Sales.

## The solution of Question 99 Chapter 4 of +2-B: –

 Trade Receivable Turnover Ratio = Annual Credit Sales Average Trade Receivable Sales = Cost of goods sold + Gross Profit Let assume Selling Price = ₹ 100 Gross Profit = ₹ 20 Cost Price = ₹ 80 Cost of goods sold = ₹ 6,40,000 Total Sales = 100 x ₹ 6,40,000 80 = ₹ 8,00,000 Total Sales = Cash Sales + Credit Sales Let credit Sales = x
 ₹ 8,00,000 = 1 x + x 3 = = x + 3x 3 = x + 3x 3 = 4 x 3 = 4 x ₹ 8,00,000 3 = ₹ 6,00,000

 Average Trade Receivable Let assume Opening Trade Receivable = x Closing Trade Receivable = x + ₹ 20,000 Average Trade Receivable (4) = ₹ 6,00,000 x + (x + ₹ 20,000) 2 4x + 4x + ₹ 80,000 = ₹ 12,00,000 8x = ₹ 12,00,000 – ₹ 80,000 8x = ₹ 11,20,000 x = ₹ 11,20,000 8 Opening Trade Receivable = ₹ 1,40,000 Closing Trade Receivable = x + ₹ 20,000 = ₹ 1,40,000 + ₹ 20,000 = ₹ 1,60,000

Also, Check out the solved question of previous Chapters: –