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=1x+x
3
 =    
 =x + 3x   
 3   
 =x + 3x   
 3   
      
 =4x  
  3  
      
 =4x₹ 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

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