On the basis of following data a Company rsquo s closing debtors will be Credit revenue from operati...........

General Accounting Principles Ratio analysis

On the basis of following data, a Company’s closing debtors will be:

Credit revenue from operations Rs 9,00,000; Average Collection period 2 months; Opening debtors are Rs 15,000 less as compared to closing debtors.

Rs 1,42,500

Rs 1,57,500

Rs 1,80,000

Rs 75,000

छोटे Courses बड़े Results

Master Ratio analysis

Prepare through Micro-courses

Try Now

Explanation:

GIVEN: Credit revenue from operations Rs 9,00,000; Average Collection period 2 months; Opening debtors are Rs 15,000 less as compared to closing debtors.

average collection period = 12 months = 2 months

trade receivable turnover ratio

trade receivable turnover ratio = 12 months = 6 times

2 months

trade receivable turnover ratio = credit revenue from operations = 6 times

average trade receivables

average trade receivables = Rs. 9,00,000 = Rs.1,50,000

Let closing debtors = X

opening debtors =X - Rs. 15,000

average trade receivables = opening debtors + closing debtors

= X - Rs. 15,000 + X = Rs.1,50,000

= X - Rs. 15,000 + X = Rs. 1,50,000 * 2

= 2X - Rs. 15,000 = Rs. 3,00,000

2X = Rs. 3,00,000 + Rs. 15,000

x = Rs. 3,15,000 / 2

CLOSING DEBTORS = Rs. 1,57,500

By: Abhipedia

Profile ResourcesReport error

Submit Error

Let's Discuss

Post Comment

Khushi Gupta

Opening inventory is 40,000, purchase 4,00,000 , purchase return 12,000. What will be the inventory turnover ratio if closing inventory is Less than opening inventory by 8000

shivam agrawal

question is asking closing debtors and in the choice there is ave detbtors

Mohit

Closing debtor after which month

Yatin

Figures(data) not fully visible in phone