# 12th | Volume 3 | Chapter:4 | Question No. 81 to 85 | Accounting Ratio | Ts grewal Accounts Solution 2022-2023

#### Question 81:

` 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

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

#### Question 82:

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

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

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

#### Question 83:

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.

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

#### 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.

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 85:

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.

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

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