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Standard XII

Accountancy

Trade Receivables Turnover Ratio

From the foll...

Question

From the following particulars of JEE Ltd. calculate trade receivable turnover ratio.

Particulars Amount (₹)

Revenue from Operations
Cash revenue from operations
Trade receivable at the beginning of the year
Trade receivable at the end of the year 10,00,000
4,50,000
20,000

24,000

[2 marks]

50 times

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25 times

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72.5 times

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18.75 times

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Solution

The correct option is B 25 times
Trade Receivable Turnover Ratio =

$\frac{R e v e n u e f r o m C r e d i t S a l e}{A v e r a g e T r a d e R e c e i v a b l e s}$
**$\frac{₹ 5, 50, 000 }{₹ 22, 000 *}$ = 25 times**
* Total Sales - Cash Sales

** $\frac{(O p e n i n g I n v e n t o r y + C l o s i n g I n v e n t o r y)}{2}$

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Similar questions

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

Calculate the amount of Opening Trade Receivables and Closing Trade Receivables from the following figures :

Trade Receivables Turnover Ratio 4 times

Cost of Revenue from Operations (Cost of Goods Sold) Rs. 6,40,000

Gross Profit Ratio 20%

Closing Trade Receivables were Rs. 20,000 more than at the beginning.

Cash Revenue from Operations being 33 $\frac{1}{3}$ % of Credit Revenue from Operations.

Calculate the amount of opening trade receivables and closing trade receivables from the following figures:

Trade Receivables turnover ratio 4 times.

Cost of Revenue from operations Rs 6,40,000

Gross profit ratio 20%

Closing trade receivables were Rs 20,000 more than at the beginning.

Calculate Trade Receivable Turnover Ratio and Average Collection Period from the following :

$\begin{matrix} Rs. Total Revenue from Operations for the year (Total Sales) & 4, 00, 000 Closing Trade Receivable & 1,00,000 Excess of Closing Trade Receivables over Opening Trade Receivables & 40,000 \end{matrix}$

Cash Revenue from Operations (Cash Sales):
Being 25 % of Credit Revenue from Operations

(a) From the following calculate 'Trade Receivables Turnover Ratio'.

Total Revenue from operation for year Rs 8,40,000.

Cash Revenue from operation-40% of credit revenue from operation.

Closing Trade Receivable over Opening Trade Receivable by Rs 80,000. Opening Trade Receivables in 20% of credit Revenue from operation.

(b) From the following, calculate Interest Coverage Ratio.

Profit after Interest and Tax Rs 4,97,000.

Rate of Income Tax 30%.

12% Debentures Rs 6,00,000.

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Particulars	Amount (₹)
Revenue from Operations Cash revenue from operations Trade receivable at the beginning of the year Trade receivable at the end of the year	10,00,000 4,50,000 20,000 24,000

From the following particulars of JEE Ltd. calculate trade receivable turnover ratio. Particulars Amount (₹) Revenue from Operations Cash revenue from operations Trade receivable at the beginning of the year Trade receivable at the end of the year 10,00,000 4,50,000 20,000 24,000 [2 marks]

The correct option is B 25 timesTrade Receivable Turnover Ratio = Revenue from Credit SaleAverage Trade Receivables ₹5,50,000∗₹22,000∗∗ = 25 times * Total Sales - Cash Sales ** (Opening Inventory+Closing Inventory)2

From the following particulars of JEE Ltd. calculate trade receivable turnover ratio.

Particulars Amount (₹)

Revenue from Operations
Cash revenue from operations
Trade receivable at the beginning of the year
Trade receivable at the end of the year 10,00,000
4,50,000
20,000

24,000

[2 marks]