Explanation:

- Trade Receivables Turnover Ratio is calculated as Credit Revenue from Operations divided by Average Trade Receivables.

- Given Credit Revenue from Operations is Rs 3,00,000 and the Ratio is 5.

- So, Average Trade Receivables = Rs 3,00,000 / 5 = Rs 60,000.

- Formula for Average Trade Receivables: (Opening Debtors + Closing Debtors) / 2.

- If Closing Debtors are two times the Opening Debtors, denote Opening Debtors as X and Closing Debtors as 2X.

- Therefore, (X + 2X) / 2 = Rs 60,000 leading to 3X / 2 = Rs 60,000.

- Solving gives X = Rs 40,000; hence Closing Debtors = 2X = Rs 80,000.

- Options: Rs 40,000; Rs 60,000; Rs 80,000; Rs 1,20,000.

Correct Answer: Option 3 - Rs 80,000

.