From the following particulars, determine Trade Receivables Turnover Ratio:

 ParticularsAmount
(Rs.)
Revenue from Operations (Net Sales)10,00,000
Credit Revenue from Operations (Credit Sales)8,00,000
Trade Receivables1,00,000

SOLUTION

Credit Sales = 8,00,000
Average Debtors = 1,00,000
Trade receivable turnover ratio = Net sales /  Average receivables

Trade receivable turnover ratio = 8,00,000 / 1,00,000
= 8 Times

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