Trade Receivable Turnover Ratio: = Credit Revenue from Operation/Average Trade Receivable
Credit Revenue from Operation = Revenue from Operation – Cash Revenue from Operation
Average Trade Receivables = Opening Trade Receivable + Closing Trade Receivable/2
The current ratio of Y Ltd. is 2:1. A state with reason which of the following transaction would
ii. decrease or
iii. not change the ratio
1) Trade receivables included debtors of Rs 40,000 which were received
2) The company purchased furniture of Rs 45,000. The vendor was paid by issue of equity share of Rs 10 each at par.