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

Question 99 Chapter 4 of +2-B

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: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 99 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

Leave a Reply