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Calculate Trade Receivables Turnover Ratio from the following data: Opening Debtors Rs 30,000; Cash Received from Debtors Rs 2,10,000; Closing Debtors Rs 45,000; Sales Return Rs 15,000. 40. Calculate Trade Receivables Turnover Ratio from the following data : Opening Debtors Rs 30,000 ; Cash Received from Debtors Rs 2,10,000 ; Closing Debtors Rs 45,000 ; Sales Return Rs 15,000?
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Calculate Trade Receivables Turnover Ratio from the following data: Op...
**Trade Receivables Turnover Ratio**
The trade receivables turnover ratio is a financial ratio that measures the efficiency of a company in collecting its accounts receivable. It indicates how many times, on average, a company collects its accounts receivable during a specific period. This ratio is an important indicator of the company's liquidity and the effectiveness of its credit and collection policies.
To calculate the trade receivables turnover ratio, we need the following information:
1. Opening Debtors: The amount of accounts receivable at the beginning of the period.
2. Cash Received from Debtors: The amount of cash received from customers during the period.
3. Closing Debtors: The amount of accounts receivable at the end of the period.
4. Sales Return: The amount of sales returned by customers during the period.
**Calculation of Trade Receivables Turnover Ratio**
The formula to calculate the trade receivables turnover ratio is:
Trade Receivables Turnover Ratio = Net Credit Sales / Average Accounts Receivable
1. Net Credit Sales = Total Sales - Sales Return
Net Credit Sales = Total Sales - Sales Return
Net Credit Sales = (Opening Debtors + Total Sales + Sales Return + Closing Debtors) - Sales Return
Net Credit Sales = Opening Debtors + Total Sales + Closing Debtors
2. Average Accounts Receivable = (Opening Debtors + Closing Debtors) / 2
3. Trade Receivables Turnover Ratio = Net Credit Sales / Average Accounts Receivable
Substituting the values from the given data:
Opening Debtors = Rs 30,000
Cash Received from Debtors = Rs 2,10,000
Closing Debtors = Rs 45,000
Sales Return = Rs 15,000
Net Credit Sales = Opening Debtors + Total Sales + Closing Debtors
Net Credit Sales = 30,000 + Total Sales + 45,000
Total Sales = Net Credit Sales - Opening Debtors - Closing Debtors
Total Sales = 2,10,000 + 30,000 + 45,000
Average Accounts Receivable = (Opening Debtors + Closing Debtors) / 2
Average Accounts Receivable = (30,000 + 45,000) / 2
Trade Receivables Turnover Ratio = Net Credit Sales / Average Accounts Receivable
Trade Receivables Turnover Ratio = (2,10,000 + 30,000 + 45,000) / ((30,000 + 45,000) / 2)
Simplifying the equation:
Trade Receivables Turnover Ratio = (2,85,000) / (75,000 / 2)
Trade Receivables Turnover Ratio = (2,85,000) / (37,500)
Therefore, the Trade Receivables Turnover Ratio is 7.6 times.
The trade receivables turnover ratio is a financial ratio that measures the efficiency of a company in collecting its accounts receivable. It indicates how many times, on average, a company collects its accounts receivable during a specific period. This ratio is an important indicator of the company's liquidity and the effectiveness of its credit and collection policies.
To calculate the trade receivables turnover ratio, we need the following information:
1. Opening Debtors: The amount of accounts receivable at the beginning of the period.
2. Cash Received from Debtors: The amount of cash received from customers during the period.
3. Closing Debtors: The amount of accounts receivable at the end of the period.
4. Sales Return: The amount of sales returned by customers during the period.
**Calculation of Trade Receivables Turnover Ratio**
The formula to calculate the trade receivables turnover ratio is:
Trade Receivables Turnover Ratio = Net Credit Sales / Average Accounts Receivable
1. Net Credit Sales = Total Sales - Sales Return
Net Credit Sales = Total Sales - Sales Return
Net Credit Sales = (Opening Debtors + Total Sales + Sales Return + Closing Debtors) - Sales Return
Net Credit Sales = Opening Debtors + Total Sales + Closing Debtors
2. Average Accounts Receivable = (Opening Debtors + Closing Debtors) / 2
3. Trade Receivables Turnover Ratio = Net Credit Sales / Average Accounts Receivable
Substituting the values from the given data:
Opening Debtors = Rs 30,000
Cash Received from Debtors = Rs 2,10,000
Closing Debtors = Rs 45,000
Sales Return = Rs 15,000
Net Credit Sales = Opening Debtors + Total Sales + Closing Debtors
Net Credit Sales = 30,000 + Total Sales + 45,000
Total Sales = Net Credit Sales - Opening Debtors - Closing Debtors
Total Sales = 2,10,000 + 30,000 + 45,000
Average Accounts Receivable = (Opening Debtors + Closing Debtors) / 2
Average Accounts Receivable = (30,000 + 45,000) / 2
Trade Receivables Turnover Ratio = Net Credit Sales / Average Accounts Receivable
Trade Receivables Turnover Ratio = (2,10,000 + 30,000 + 45,000) / ((30,000 + 45,000) / 2)
Simplifying the equation:
Trade Receivables Turnover Ratio = (2,85,000) / (75,000 / 2)
Trade Receivables Turnover Ratio = (2,85,000) / (37,500)
Therefore, the Trade Receivables Turnover Ratio is 7.6 times.
Community Answer
Calculate Trade Receivables Turnover Ratio from the following data: Op...
Calculate Trade Receivables Turnover Ratio from the following data:
Opening Debtors Rs 30,000; Cash Received from Debtors Rs 2,10,000; Closing Debtors Rs 45,000;
Sales Return Rs 15,000.
40.
Calculate
Trade
Receivables
Turnover
Ratio
from
the
following
data
:
Opening
Debtors
Rs
30,000
;
Cash
Received
from
Debtors
Rs
2,10,000
;
Closing
Debtors
Rs
45,000
;
Sales
Return
Rs
15,000
Opening Debtors Rs 30,000; Cash Received from Debtors Rs 2,10,000; Closing Debtors Rs 45,000;
Sales Return Rs 15,000.
40.
Calculate
Trade
Receivables
Turnover
Ratio
from
the
following
data
:
Opening
Debtors
Rs
30,000
;
Cash
Received
from
Debtors
Rs
2,10,000
;
Closing
Debtors
Rs
45,000
;
Sales
Return
Rs
15,000
|
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Calculate Trade Receivables Turnover Ratio from the following data: Opening Debtors Rs 30,000; Cash Received from Debtors Rs 2,10,000; Closing Debtors Rs 45,000; Sales Return Rs 15,000. 40. Calculate Trade Receivables Turnover Ratio from the following data : Opening Debtors Rs 30,000 ; Cash Received from Debtors Rs 2,10,000 ; Closing Debtors Rs 45,000 ; Sales Return Rs 15,000?
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Calculate Trade Receivables Turnover Ratio from the following data: Opening Debtors Rs 30,000; Cash Received from Debtors Rs 2,10,000; Closing Debtors Rs 45,000; Sales Return Rs 15,000. 40. Calculate Trade Receivables Turnover Ratio from the following data : Opening Debtors Rs 30,000 ; Cash Received from Debtors Rs 2,10,000 ; Closing Debtors Rs 45,000 ; Sales Return Rs 15,000? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Calculate Trade Receivables Turnover Ratio from the following data: Opening Debtors Rs 30,000; Cash Received from Debtors Rs 2,10,000; Closing Debtors Rs 45,000; Sales Return Rs 15,000. 40. Calculate Trade Receivables Turnover Ratio from the following data : Opening Debtors Rs 30,000 ; Cash Received from Debtors Rs 2,10,000 ; Closing Debtors Rs 45,000 ; Sales Return Rs 15,000? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate Trade Receivables Turnover Ratio from the following data: Opening Debtors Rs 30,000; Cash Received from Debtors Rs 2,10,000; Closing Debtors Rs 45,000; Sales Return Rs 15,000. 40. Calculate Trade Receivables Turnover Ratio from the following data : Opening Debtors Rs 30,000 ; Cash Received from Debtors Rs 2,10,000 ; Closing Debtors Rs 45,000 ; Sales Return Rs 15,000?.
Calculate Trade Receivables Turnover Ratio from the following data: Opening Debtors Rs 30,000; Cash Received from Debtors Rs 2,10,000; Closing Debtors Rs 45,000; Sales Return Rs 15,000. 40. Calculate Trade Receivables Turnover Ratio from the following data : Opening Debtors Rs 30,000 ; Cash Received from Debtors Rs 2,10,000 ; Closing Debtors Rs 45,000 ; Sales Return Rs 15,000? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Calculate Trade Receivables Turnover Ratio from the following data: Opening Debtors Rs 30,000; Cash Received from Debtors Rs 2,10,000; Closing Debtors Rs 45,000; Sales Return Rs 15,000. 40. Calculate Trade Receivables Turnover Ratio from the following data : Opening Debtors Rs 30,000 ; Cash Received from Debtors Rs 2,10,000 ; Closing Debtors Rs 45,000 ; Sales Return Rs 15,000? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate Trade Receivables Turnover Ratio from the following data: Opening Debtors Rs 30,000; Cash Received from Debtors Rs 2,10,000; Closing Debtors Rs 45,000; Sales Return Rs 15,000. 40. Calculate Trade Receivables Turnover Ratio from the following data : Opening Debtors Rs 30,000 ; Cash Received from Debtors Rs 2,10,000 ; Closing Debtors Rs 45,000 ; Sales Return Rs 15,000?.
Solutions for Calculate Trade Receivables Turnover Ratio from the following data: Opening Debtors Rs 30,000; Cash Received from Debtors Rs 2,10,000; Closing Debtors Rs 45,000; Sales Return Rs 15,000. 40. Calculate Trade Receivables Turnover Ratio from the following data : Opening Debtors Rs 30,000 ; Cash Received from Debtors Rs 2,10,000 ; Closing Debtors Rs 45,000 ; Sales Return Rs 15,000? in English & in Hindi are available as part of our courses for Class 12.
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