Question 99 Chapter 4 of +2-B
Table of Contents
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
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
