Page No
4.112:
Question
86:
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
Page No
4.113:
Question
87:
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
Page No
4.113:
Question
88:
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
Page No
4.113:
Question
89:
From the following particulars, determine Trade Receivables
Turnover Ratio:
|
|
` |
|
Revenue
from Operations (Net Sales) |
20,00,000 |
|
Credit
Revenue from Operations (Credit Sales) |
16,00,000 |
|
Trade
Receivables |
2,00,000 |
Answer:
Credit Sales = 16,00,000
Average Debtors = 2,00,000
Trade receivable turnover ratio= Net sales/ Average
receivables
Trade receivable turnover ratio= 16,00,000/2,00,000= 8 Times
Page No
4.113:
Question
90:
Compute Trade Receivables Turnover Ratio from the
following:
|
|
31st March, 2020(
`) |
31st March, 2021(
`) |
|
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 2017 = 83,000 + 1,17,000/2 = ` 1,00,000
In 2018 = 1,17,000 + 83,000/2 =
` 1,00,000
Debtors Turnover Ratio = Net Sales/Average Debtors
In 2020 = 8,00,000/1,00,000 = 8 Times
In 2021 = 7,00,000/1,00,000 = 7 Times
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