Question 13 Marks
From the following particulars determine the Closing Debtors:-
| ₹ | |
| Total Revenue from Operations | 24,00,000 |
| Cash Revenue from Operations | 4,60,000 |
| Revenue from Operations Returns (out of credit revenue from operations) | 20,000 |
| Trade Receivables Turnover Ratio | 6 Times |
| Opening Debtors | 2,50,000 |
| Opening B/R | 14,000 |
| Closing B/R | 12,000 |
Answer
View full question & answer→Net Credit Revenue from operations = Total Revenue from operations - Cash revenue from operations - Sales Return
= 24,00,000 - 4,60,000 - 20,000 = 19,20,000
Trade Receivables Turnover Ratio = Net Credit Revenue from operations / Average Trade Receivables
6 = 19,20,000 / Average Trade Receivables
Average Trade Receivables = 19,20,000 / 6 = 3,20,000
(Opening Debtors + Closing Debtors + Opening B/R + Closing B/R) / 2 = Average Trade Receivables
(2,50,000 + Closing Debtors + 14,000 + 12,000) / 2 = 3,20,000
Closing Debtors = 6,40,000 - 2,76,000 = 3,64,000
= 24,00,000 - 4,60,000 - 20,000 = 19,20,000
Trade Receivables Turnover Ratio = Net Credit Revenue from operations / Average Trade Receivables
6 = 19,20,000 / Average Trade Receivables
Average Trade Receivables = 19,20,000 / 6 = 3,20,000
(Opening Debtors + Closing Debtors + Opening B/R + Closing B/R) / 2 = Average Trade Receivables
(2,50,000 + Closing Debtors + 14,000 + 12,000) / 2 = 3,20,000
Closing Debtors = 6,40,000 - 2,76,000 = 3,64,000