Question 106:

From the following information, calculate Opening Trade Receivables and Closing Trade Receivables:

Trade Receivables Turnover Ratio-4 times

Closing Trade Receivables were ₹20,000 more than that in the beginning.

Cost of Revenue from Operations - ₹6,40,000.

Cash Revenue from Operations- 1/3rd of Credit Revenue from Operations.

Gross Profit Ratio - 20%.

(CBSE 2025)

Answer:

 

Total Revenue = Cost of Goods Sold + Gross Profit

8,00,00,= 6,40,000 + (6,40,000×1/4)

Credit Revenue = x+  = 8,00,000

3x + x = 24,00,000

 

4x = 24,00,000

 

x =  = 6,00,000

Trade Receivables Turnover Ratio =  

 

4 =  

 

Average Trade Receivables =  = 1,50,000

 

Calculation Opening Trade Receivables and Closing Trade Receivables

 

Let,

          Opening Trade Receivables = x

          Closing Trade Receivables = x + 20,000

 

Average Trade Receivables =

 

1,50,000 =

 

3,00,000 = x+ x + 20,000

2x = 3,00,000 + 20,000

2x = 2,80,000

x =   = 1,40,000

 

Opening trade receivables = 1,40,000

Closing trade receivables = 1,40,000 + 20,000 = 1,60,000

Calculation of Opening and closing Trade Receivables

Question 107:

 ₹1,75,000 is the Credit Revenue from Operations, i.e., Net Credit Sales of an enterprise. If Trade Receivables Turnover Ratio is 8 times, calculate Trade Receivables in the Beginning and at the end of the year. Trade Receivables at the end is ₹7,000 more than that in the beginning.

Answer:

Trade receivable turnover ratio= Net sales/ Average receivables

8=1, 75,000/ Average receivables

Average receivables= 27,875

Let Opening Trade Receivables = x

∴ Closing Trade Receivables = x + 7,000

Average receivables= Opening Receivables +Closing Receivables/2

21,875=x+x+7000/2

Or, 43,750=2x+7,000

Or, 2x=36,750

Or, x=18,375

∴ Opening Trade Receivables = x = 18,375

Closing Trade Receivables = x +7,000 = 25,375

Question 108:

From the following information, calculate Opening and Closing Trade Receivables, if Trade Receivables Turnover Ratio is 3 Times:
(i) Cash Revenue from Operations is 1/3rd of Credit Revenue from Operations.
(ii) Cost of Revenue from Operations is ₹3,00,000.
(iii) Gross Profit is 25% of the Revenue from Operations.
(iv) Trade Receivables at the end are 3 Times more than that of in the beginning. 

Answer:

Question 109:

Cash Revenue from Operations (Cash Sales) ₹2,00,000, Cost of Revenue from Operations or Cost of Goods Sold ₹3,50,000; Gross Profit ₹1,50,000; Trade Receivables Turnover Ratio 3 Times. Calculate Opening and Closing Trade Receivables in each of the following alternative cases;

Case 1 : If Closing Trade Receivables were ₹1,00,000 in excess of Opening Trade Receivables.
Case 2 : If trade Receivables at the end were 3 times than in the beginning.
Case 3 ; If Trade Receivables at the end were 3 times more than that of in the beginning.

Answer:

Total Sales = Cost of Goods Sold + Gross Profit

= 3,50,000 + 1,50,000 = 5,00,000

Credit Sales = Total Sales − Cash Sales

= 5,00,000 − 2,00,000 = 3,00,000

Case 1:

Let Opening Trade Receivables = x

Closing Trade Receivables = x + 1,00,000

Opening Trade Receivables = x = ₹50,000

Closing Trade Receivables = x + 1,00,000 = 50,000 + 1,00,000 = ₹1,50,000

Case 2:

Let Opening Trade Receivables = x

Closing Trade Receivables = 3 x

Opening Trade Receivables = x = ₹50,000

Closing Trade Receivables = 3x = 3 × 50,000 = ₹1,50,000

Case 3:

Let Opening Trade Receivables = x

Closing Trade Receivables = x + 3 x =4x

Opening Trade Receivables = x = ₹40,000

Closing Trade Receivables = 4 x = 4 × 40,000 = ₹1,60,000

Question 110:

Calculate Trade payables Turnover Ratio from the following information:
Opening Creditors ₹1,25,000; Opening Bills Payable ₹10,000; Closing Creditors ₹90,000; Closing bills Payable ₹5,000; Purchases ₹9,50,000; Cash Purchases ₹1,00,000; Purchases Return ₹45,000.

Answer:

Net Credit Purchases = Purchases – Cash Purchases – Purchase Return
= ₹9,50,000 – ₹1,00,000 – ₹45,000 = ₹8,05,000