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From the Following Particulars, Determine Trade Receivables Turnover Ratio: - Accountancy

Sum

From the following particulars, determine Trade Receivables Turnover Ratio:

 
Revenue from Operations (Net Sales) 10,00,000
Credit Revenue from Operations (Credit Sales) 8,00,000
Trade Receivables 1,00,000
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Solution

Credit Sales = 8,00,000

Average Debtors = 1,00,000

Trade Receivable Turnover Ratio = `"Net Credit Sales"/"Average Trade Receivables"`

`= 800000/100000` = 8 times

  Is there an error in this question or solution?
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APPEARS IN

TS Grewal Class 12 Accountancy - Analysis of Financial Statements
Chapter 3 Accounting Ratios
Exercise | Q 84 | Page 102
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