Question

calculate credit revenue from operation if opening trade recievable is rs 50000 and closing trade recievable is 150000 and trade recievable turnover ratio is 4 times​

Answer 1

Answer:

trade receivable turnover ratio=credit revenue from operations/average trade receivable

Average trade receivable=opening+closing/2

=50000+150000/2

=200000/2=100000

4=credit revenue from operations/100000

credit revenue from operations=400000

Answer 2

Explanation:

Solution :

Trade Receivables Turnover Ratio is 4 Times.

★Trade Receivable Turnover Ratio :

$\sf{\longrightarrow{\dfrac{Credit \: Revenue \: from \: Operations}{Average \:Trade \: Receivables}}}$

$\sf{\longrightarrow{\dfrac{Credit \: Revenue \: from \: Operations}{ \frac{Ope.ning \:Trade\: Receivables \: + \: Closing \:Trade\: Receivables}{2}}}}$

$\sf{\longrightarrow\:4\:=\:{\dfrac{Credit \: Revenue \: from \: Operations}{Average \:Trade \: Receivables}}}$

★ Average Trade Receivables =

$\sf{\longrightarrow{\dfrac{Ope.ning \:Trade\: Receivables \: + \: Closing \:Trade\: Receivables}{2}}}$

$\sf{\longrightarrow{\dfrac{50,000 \: + \: 1,50,000}{2}}}$

$\sf{\longrightarrow{\dfrac{2,00,000}{2}}}$

$\longrightarrow \: 1,00,000$

Average Trade Receivables = Rs. 1,00,000

$\sf{\longrightarrow\:4\:=\:{\dfrac{Credit \: Revenue \: from \: Operations}{1,00,000}}}$

★Credit Revenue from Operations =

1,00,000 × 4

Credit Revenue from Operations = 4,00,000

Therefore, Credit Revenue from Operations = Rs. 4,00,000.