Question 96:
|
Credit Revenue from Operations,
i.e., Net Credit Sales for the year |
12,00,000 |
|
Debtors |
1,20,000 |
|
Billls Receivable |
80,000 |
Calculate Trade Receivables Turnover
Ratio.
Answer:
Trade
receivable turnover ratio= Net sales/ Debtors+Bills
receivable
Trade
receivable turnover ratio= 12,00,000/1,20,000+80,000=6
Times
Question 97:
Calculate Trade Receivables Turnover Ratio from the
following information:
|
|
Opening Balance ( ₹) |
Closing Balance ( ₹) |
|
Sundry Debtors |
28,000 |
25,000 |
|
Bills Receivable |
7,000 |
15,000 |
|
Provision for Doubtful Debts |
2,800 |
2,500 |
Total Sales ₹1,00,000; Sales Return ₹1,500; Cash Sales ₹23,500.
Answer:
Net Credit Sales = Total Sales − Sales Return
− Cash Sales
= 1,00,000 − 1,500
− 23,500 = 75,000
Average receivables= Opening
Receivables +Closing Receivables/2
Average receivables=
28,000+7,000+25,000+15,000/2=37,500
Trade
receivable turnover ratio= Net sales/ Average
receivables
Trade receivable turnover ratio= 75,000/37,500 = 2
Times
Question 98:
Closing trade receivables ₹90,000, Revenue from operation ₹7,20,000, Cash Revenue from operation ₹1,80,000,
Provision for Doubtful debts ₹8,000. Calculate Trade
receivable turnover ratio.
Answers;
Trade
receivable turnover ratio = Credit revenue from operation/ Average trade receivable
Trade
receivable turnover ratio = 5,40,000/90,000 = 6 Times
Credit
revenue from operations= Revenue from operations - Cash revenue from operation
5,40,000 = 7,20,000 – 1,80,000
Question 99:
Closing Trade Receivables ₹1,00,000;
Cash Sales being 25% of Credit Sales; Excess of Closing Trade Receivables over
Opening Trade Receivables ₹40,000; Revenue from Operations, i.e., Net
Sales ₹6,00,000. Calculate Trade Receivables Turnover Ratio.
Answer:
Let Credit Sales be = x
Cash Sales=x+25/100=25x/100
Total Sales = Cash Sales + Credit Sales
6,00,000=25x/100
Or, 125x/100=6,00,000
Or, x×6,00,000×100/125=4,80,000
Credit Sales = 4,80,000
Closing Trade Receivables = Opening Trade Receivables
+ 40,000
1,00,000 = Opening Trade
Receivables + 40,000
Opening Trade Receivables = ₹60,000
Average receivables= Opening
Receivables +Closing Receivables/2
Average receivables=
1,00,000+60,000/2=80,000
Trade
receivable turnover ratio= Net sales/ Average
receivables
Trade receivable turnover ratio= 4,80,000/80,000=
6 Times
Question 100:
Compute Trade Receivables Turnover Ratio from the following:
|
|
31st March, 2022( ₹) |
31st March, 2023( ₹) |
|
Revenue from Operations (Net
Sales) |
8,00,000 |
7,00,000 |
|
Debtors in the beginning of year |
83,000 |
1,17,000 |
|
Debtors at the end of year |
1,17,000 |
83,000 |
|
Sales Return |
1,00,000 |
50,000 |
Answer:
Average Debtors =Opening Debtors + Closing Debtors/2
In 2022 = 83,000 + 1,17,000/2 = ₹1,00,000
In 2023 =1,17,000 + 83,000/2 = ₹1,00,000
Debtors Turnover Ratio = Net Sales/Average Debtors
In 2022 = 8,00,000/1,00,000 = 8 Times
In 2023= 7,00,000/1,00,000 = 7 Times
Ts Grewal Solution 2025-2026
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Class 12 / Volume – III
Chapter 4 – Accounting Ratios