Credit revenue from operations Rs 5 60 000 Debtors Rs 70 000 B R Rs 10 000 Average Collection Period...........

General Accounting Principles Ratio analysis

Credit revenue from operations Rs 5,60,000; Debtors Rs 70,000; B/R Rs 10,000. Average Collection Period will be :

52 Days

53 Days

45 Days

46 Days

Credit revenue from operations Rs 5,60,000; Debtors Rs 70,000; B/R Rs 10,000

trade receivale turnover ratio = Credit revenue from operations

average trade receivales(Debtors + B/R )

= Rs 5,60,000 = 7 times
Rs 70,000 + Rs 10,000

Average Collection Period = 365 days

trade receivale turnover ratio

= 365 = 52.14 or 53 days

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