Question

W
Total Revenue from Operations
39,00,000; Cash revenue from
Operations Rs3,00,000;
Debtors 1,00,000; Bills
receivables 320,000. Trade
receivables Turnover Ratio will
Will
be
|​

Answer 1

Answer:

Trade receivables turnover ratio = Credit revenue from operations / Average trade receivables

Credit revenue from operations = Total - Cash revenue from operations

Credit revenue from operations = 39,00,000 - 3,00,000

Credit revenue from operations = 36,00,000

Trade receivables = Debtors + Bills receivable = 1,00,000 + 3,20,000

Trade receivables =4,20,000

Trade receivables turnover ratio = Credit revenue from operations / Average trade receivables

    = 36,00,000 / 4,20,000

Explanation: