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प्रश्न
Calculate the amount of opening trade receivables and closing trade receivables from the following information:
Trade receivables turnover ratio 8 times
Cost of revenue from operations ₹ 4,80,000
The amount of credit revenue from operations is ₹ 2,00,000 more than cash revenue from operations. Gross profit ratio is 20%. Opening trade receivables are 1/4th of Closing trade receivables.
उत्तर
|
Trade Receivables Turnover Ratio |
= |
Net Credit Sales/Average Receivables |
|
Cost of Revenue from Operations |
= |
₹ 4,80,000 |
|
Let Net Sales be |
= |
x |
|
Gross Profit ratio |
= |
Gross Profit/Net Sales × 100 |
|
20/100 |
= |
x − 4,80,000/x |
|
20x/100 |
= |
x – 4,80,000 |
|
x |
= |
6,00,000 |
|
Net Sales of the firm is |
= |
₹6,00,000 |
|
Let the cash revenue from operations |
= |
y |
|
Credit revenue from operations |
= |
y + 2,00,000 |
|
Total Sales of the firm |
= |
Cash Sales + credit sales |
|
6,00,000 |
= |
(y + y + 2,00,000) |
|
y |
= |
2,00,000 |
|
Cash Sales of the firm |
= |
₹2,00,000 |
|
Net Credit Sales |
= |
₹(2,00,000 + 2,00,000) = ₹4,00,000 |
|
Average Receivables |
= |
₹(4,00,000/8) |
|
= |
₹50,000 |
|
|
Let closing trade receivables be |
= |
z |
|
Opening trade receivables |
= |
z/4 |
|
Average trade Receivable |
= |
(Opening Trade Receivables + Closing trade Receivables)/2 |
|
50,000 |
= |
(z + z/4)/2 |
|
z |
= |
80,000 |
Therefore, Opening Trade Receivables and Closing Trade Receivables of the firm are ₹20,000 and ₹80,000 respectively.
संबंधित प्रश्न
Short Answer Question
What are the various types of ratios?
Compute Stock Turnover Ratio from the following information:
|
|
Rs |
|
Net Revenue from Operations |
2,00,000 |
|
Gross Profit |
50,000 |
|
Inventory at the end |
60,000 |
|
Excess of inventory at the end over inventory in the beginning |
20,000 |
A trading firm’s average inventory is Rs 20,000 (cost). If the inventory turnover ratio is 8 times and the firm sells goods at a profit of 20% on sale, ascertain the profit of the firm.
From the following compute Current Ratio:
| ₹ | ₹ | |||
| Trade Receivable (Sundry Debtors) | 1,80,000 | Bills Payable | 20,000 | |
| Prepaid Expenses | 40,000 | Sundry Creditors | 1,00,000 | |
| Cash and Cash Equivalents | 50,000 | Debentures | 4,00,000 | |
| Marketable Securities | 50,000 | Inventories | 80,000 | |
| Land and Building | 5,00,000 | Expenses Payable | 80,000 |
From the following information, calculate Interest Coverage Ratio: Profit after Tax ₹1,70,000; Tax ₹30,000; Interest on Long-term Funds ₹50,000.
Revenue from Operations ₹4,00,000; Gross Profit ₹1,00,000; Closing Inventory ₹1,20,000; Excess of Closing Inventory over Opening Inventory ₹40,000. Calculate Inventory Turnover Ratio.
₹ 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.
Calculate Gross Profit Ratio from the following data:
Average Inventory ₹3,20,000; Inventory Turnover Ratio 8 Times; Average Trade Receivables ₹4,00,000; Trade Receivables Turnover Ratio 6 Times; Cash Sales 25% of Net Sales.
What will be the Operating Profit Ratio, if Operating Ratio is 82.59%?
Calculate Operating Profit Ratio,in each of the following alternative cases:
Case 1: Revenue from Operations (Net Sales) ₹ 10,00,000; Operating Profit ₹ 1,50,000.
Case 2: Revenue from Operations (Net Sales) ₹ 6,00,000; Operating Cost ₹ 5,10,000.
Case 3: Revenue from Operations (Net Sales) ₹ 3,60,000; Gross Profit 20% on Sales; Operating Expenses ₹ 18,000
Case 4: Revenue from Operations (Net Sales) ₹ 4,50,000; Cost of Revenue from Operations ₹ 3,60,000; Operating Expenses ₹ 22,500.
Case 5: Cost of Goods Sold, i.e., Cost of Revenue from Operations ₹ 8,00,000; Gross Profit 20% on Sales; Operating Expenses ₹ 50,000.
Net Profit before Interest and Tax ₹4,00,000; 15% Long-term Debt ₹8,00,000; Shareholders' Funds ₹4,00,000. Calculate Return on Investment.
From the following, calculate (a) Debt to Equity Ratio; (b) Total Assets to Debt Ratio; and (c) Proprietary Ratio:
| Equity Share Capital | ₹ 75,000 | Debentures | ₹ 75,000 | |
| Preference Share Capital | ₹ 25,000 | Trade Payable | ₹ 40,000 | |
| General Reserve | ₹ 45,000 | Outstanding Expenses | ₹ 10,000 | |
| Balance in Statement of Profit and Loss | ₹ 30,000 |
Choose the appropriate alternative from the given options:
Bishan and Sudha were partners in firm sharing profits and losses in the ratio of 5 : 3. Alena was admitted as a new partner. It was decided that the new profit sharing ratio of Bishan, Sudha, and Alena will be 10: 6: 5. The sacrificing ratio of Bishan and Sudha will be:
Which ratio is considered as safe margin of solvency?
Which Ratio establishes the relationship between current assets and current liabilities?
Current Ratio is ____________.
Current ratio of Vidur Pvt. Ltd. is 3 : 2. Accountant wants to maintain it at 2 : 1. Following options are available:
- He can repay bills payable
- He can purchase goods on credit
- He can take short-term loan
Choose the correct option:
The ______ measures the activity of a firm's inventory.
Revenue from the sale of goods manufactured is shown in the Statement of Profit and Loss as ______
Read the following information and answer the given question:
| Year | 2020 | 2019 | 2018 |
| Amount | (in ₹) | (in ₹) | (in ₹) |
| Outstanding Expenses | 50,000 | 40,000 | 25,000 |
| Prepaid Expenses | 3,00,000 | 2,50,000 | 3,50,000 |
| Trade Payables | 18,00,000 | 16,00,000 | 14,00,000 |
| Inventory | 12,00,000 | 10,00,000 | 11,00,000 |
| Trade Receivables | 11,00,000 | 8,00,000 | 10,00,000 |
| Cash in hand | 17,00,000 | 12,00,000 | 15,00,000 |
| Revenue from operations | 24,00,000 | 18,00,000 | 20,00,000 |
| Gross Profit Ratio | 12% | 15% | 18% |
Quick Ratio for the year 2018 will be ______. (Choose the correct alternative)
