12th | Accounting Ratio | Question No. 96 To 100 | Ts Grewal Solution 2023-2024

Question 96:

` 3,00,000 is the Cost of Revenue from Operations (Cost of Goods Sold).
Inventory Turnover Ratio 8 times; Inventory in the beginning is 2 times more than the inventory at the end. Calculate value of Opening and Closing Inventories

Answer:

Inventory tunover ratio= Cost of goods sold / Average Inventory

8=3,00,000/Average Inventory

Average Inventory=37,500

Let Closing Inventory = x

Opening Inventory = 2x + x = 3x

Average Inventory = Opening Inventory + Closing Inventory /2

37,500=3.5X+X/2

Or, 4X =75,000

Or, X =18,750

Closing Inventory = x = ` 18,750

Opening Inventory = 3x = 3 ×18,750 = ` 56,250

Trade Receivable Turnover Ratio

Question 97:

Credit Revenue from Operations, i.e., Net Credit Sales for the year	1,20,000
Debtors	12,000
Billls Receivable	8,000

Calculate Trade Receivables Turnover Ratio.

Answer:

Trade receivable turnover ratio= Net sales/ Debtors+Bills receivable

Trade receivable turnover ratio= 1,20,000/12000+8,000=6 Times

Question 98:

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 99:

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 100:

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.