If Trade Receivables Turnover Ratio is more than the norm set for it, what will it indicate? Post category:Accountancy Reading time:1 mins read SOLUTION A higher trade receivables turnover ratio will indicate that the amount from trade receivables is being collected more quickly. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostWhat is the accounting treatment of ‘Stores and Spares’ when the company. (C.B.S.E. Sample Paper, 2017) Next PostState giving reason, whether the trade receivables turnover ratio will: (a) increase, (b) decrease, or (c) not alter because of ‘cash collected from trade receivables’. You Might Also Like Seema Ltd. offered for subscription 10,000 shares of Rs. 25 each, payable Rs. 5 per share on application, Rs. 10 per share on allotment (including Rs. 5 per share as premium), Rs. 5 per share as first call on the shares and the balance in two equal amounts at intervals of three months. All the shares were applied for and allotted. All the money was received except the second call and final call on 200 and 400 shares respectively. Pass the entries in the company’s Journal, Cash Book and the ledger. Also show the company’s Balance Sheet on completion of the above transactions. July 13, 2022 X, T and Z are partners sharing profits in the ratio, of 1 / 2: 2 / 5 and 1 / 10. Find the new ratio of remaining partners if Z retires. September 27, 2022 Closing Trade Receivables Rs. 4,00,000; Cash Sales being 25% of Credit Sales; Excess of Closing Trade Receivables over Opening Trade Receivables Rs. 2,00,000; Revenue from Operations, i.e., Revenue from Operations, i.e., Net Sales Rs. 15,00,000. Calculate Trade Receivables Turnover Ratio [(Hint:) 1. Net Credit Sales = Total Sales − Cash Sales 2. Opening Trade Receivables = Closing Trade Receivables − Excess of Closing Trade Receivables over Opening Trade Receivables.] August 16, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Seema Ltd. offered for subscription 10,000 shares of Rs. 25 each, payable Rs. 5 per share on application, Rs. 10 per share on allotment (including Rs. 5 per share as premium), Rs. 5 per share as first call on the shares and the balance in two equal amounts at intervals of three months. All the shares were applied for and allotted. All the money was received except the second call and final call on 200 and 400 shares respectively. Pass the entries in the company’s Journal, Cash Book and the ledger. Also show the company’s Balance Sheet on completion of the above transactions. July 13, 2022
X, T and Z are partners sharing profits in the ratio, of 1 / 2: 2 / 5 and 1 / 10. Find the new ratio of remaining partners if Z retires. September 27, 2022
Closing Trade Receivables Rs. 4,00,000; Cash Sales being 25% of Credit Sales; Excess of Closing Trade Receivables over Opening Trade Receivables Rs. 2,00,000; Revenue from Operations, i.e., Revenue from Operations, i.e., Net Sales Rs. 15,00,000. Calculate Trade Receivables Turnover Ratio [(Hint:) 1. Net Credit Sales = Total Sales − Cash Sales 2. Opening Trade Receivables = Closing Trade Receivables − Excess of Closing Trade Receivables over Opening Trade Receivables.] August 16, 2022