Question : Credit Revenue from Operations Rs. 2,00,000; Opening Trade Receivables Rs. 30,000 and Closing Trade Receivables Rs. 50,000 . which of the following transactions will Decrease ....................
Option 1: Collection from trade receivables Rs. 10,000
Option 2: Sold goods on credit Rs. 20,000
Option 3: Revenue from Operations returns Rs. 4,000
Option 4: Credit purchase Rs. 50,000
Correct Answer: Credit purchase Rs. 50,000
Solution : Answer = Credit purchase Rs. 50,000 Trade receivable turnover ratio=$\frac{\text{Net credit sales}}{\text{Average trade receivables}}$ ⇒$\frac{2,00,000}{40,000}$= 5 times. Average trade receivable= $\frac{30,000+50,000}{2}$= $\frac{80,000}{2}$= 40,000. Purchase of goods on credit will not affect on trade receivables turnover ratio. Hence, the correct option is 4.
Question : Purchase Rs.80,000; Opening Inventory Rs. 10,000 and Closing Inventory Rs.30,000. which of the following transactions will decrease ----
Option 1: Goods purchased for Rs.20,000
Option 2: Purchase returns Rs.5,000
Option 3: Goods costing Rs. 10,000 withdrawn for personal use
Option 4: Goods costing Rs.5,000 distributed as free sample
Question : A firm made credit Revenue from Operations (Credit Sales) of Rs.5,40,000 during the year. If the trade receivables turnover ratio is 9 times, The value of opening and closing trade Receivables, if the closing trade receivables are more by Rs.8,000 than the opening trade receivable will be
Option 1: Opening trade receivable Rs 56,000 closing trade receivable Rs 64,000
Option 2: Opening trade receivable Rs 64,000 closing trade receivable Rs 56000
Option 3: Opening trade receivable Rs 24000 closing trade receivable Rs 32000
Option 4: None of the above
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