Credit Revenue from Operations, i.e.,
Net credit sales for the year - 1,20,000
Debtors - 12,000
Bills Receivable - 8,000
Calculate Trade Receivable or Debtors' Turnover Ratio.

4 times

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3 times

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6 times

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5 times

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Solution

The correct option is D 6 times
Debtor's turnover ratio = Credit sales
-------------------------------
Average receivables

= 1,20,000
-----------------
20,000
= 6 times.

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Similar questions

Q. From the information given below, calculate Trade Receivables Turnover Ratio:
Credit Revenue from Operations, i.e., Credit Sales ₹8,00,000; Opening Trade Receivables ₹1,20,000; and Closing Trade Receivables ₹2,00,000.
State giving reason, which of the following would increase, decrease or not change Trade Receivables Turnover Ratio:
(i) Collection from Trade Receivables ₹40,000.
(ii) Credit Revenue from Operations, i.e., Credit Sales ₹80,000.
(iii) Sales Return ₹20,000.
(iv) Credit Purchase ₹1,60,000.

Q. From the following particulars, determine Trade Receivables Turnover Ratio:

	₹
Revenue from Operations (Net Sales)	10,00,000
Credit Revenue from Operations (Credit Sales)	8,00,000
Trade Receivables	1,00,000

Closing Trade Receivables ₹ 4,00,000; Cash Sales being 25% of Credit Sales; Excess of Closing Trade Receivables over Opening Trade Receivables ₹ 2,00,000; Revenue from Operations, i.e., Revenue from Operations, i.e., Net Sales ₹ 15,00,000. Calculate Trade Receivables Turnover Ratio

[Hint: 1. Net Credit Sales = Total Sales − Cash Sales

2. Opening Trade Receivables = Closing Trade Receivables − Excess of Closing Trade Receivables over Opening Trade Receivables.]

Q. 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.

Q. ₹ 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.

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Credit Revenue from Operations, i.e.,Net credit sales for the year - 1,20,000Debtors - 12,000Bills Receivable - 8,000Calculate Trade Receivable or Debtors' Turnover Ratio.

The correct option is D 6 timesDebtor's turnover ratio = Credit sales ------------------------------- Average receivables = 1,20,000 ----------------- 20,000 = 6 times.

Credit Revenue from Operations, i.e.,
Net credit sales for the year - 1,20,000
Debtors - 12,000
Bills Receivable - 8,000
Calculate Trade Receivable or Debtors' Turnover Ratio.

The correct option is D 6 times
Debtor's turnover ratio = Credit sales
-------------------------------
Average receivables

= 1,20,000
-----------------
20,000
= 6 times.