Question
From the following particulars determine the Closing Debtors:
✓
Answer
Trade Receivables Turnover Ratio $=\frac{\text{Net Credit Revenue from Operations}}{\text{Average Debtors &B/R}}$
$6\ \text{(Given)}=\frac{\text{Total Revenue from Operations}\\ {-{\text{}}\text{ Cash Revenue from Operations}}\\{-{\text{}}\text{Credit Revenue from Operations Returns}}}{\text{Average Debtors & B/R}}$
$6=\frac{(₹\ 24,00,000 - ₹\ 4,60,000- ₹\ 20,000 )}{\text{Average Debtors &B/R}}$
Average Debtors & B/R $=\frac{₹\ 19,20,000}{6}= ₹\ 3,20,000 $
Total of Opening Debtors & B/R and Closing Debtors & B/R = ₹ 3,20,000 × 2 = ₹ 6,40,000
or Opening Debtors + Opening B/R + Closing Debtors + Closing B/R = ₹ 6,40,000
= ₹ 2,50,000 + ₹ 14,000 + Closing Debtors + ₹ 12,000 = ₹ 6,40,000
Closing Debtors = ₹ 6,40,000 - ₹ 2,50,000 - ₹ 14,000 - ₹ 12,000
= ₹ 3,64,000
$6\ \text{(Given)}=\frac{\text{Total Revenue from Operations}\\ {-{\text{}}\text{ Cash Revenue from Operations}}\\{-{\text{}}\text{Credit Revenue from Operations Returns}}}{\text{Average Debtors & B/R}}$
$6=\frac{(₹\ 24,00,000 - ₹\ 4,60,000- ₹\ 20,000 )}{\text{Average Debtors &B/R}}$
Average Debtors & B/R $=\frac{₹\ 19,20,000}{6}= ₹\ 3,20,000 $
Total of Opening Debtors & B/R and Closing Debtors & B/R = ₹ 3,20,000 × 2 = ₹ 6,40,000
or Opening Debtors + Opening B/R + Closing Debtors + Closing B/R = ₹ 6,40,000
= ₹ 2,50,000 + ₹ 14,000 + Closing Debtors + ₹ 12,000 = ₹ 6,40,000
Closing Debtors = ₹ 6,40,000 - ₹ 2,50,000 - ₹ 14,000 - ₹ 12,000
= ₹ 3,64,000
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