Particulars | Amount (Rs.) |
Revenue from Operations (Net Sales) | 10,00,000 |
Credit Revenue from Operations (Credit Sales) | 8,00,000 |
Trade Receivables | 1,00,000 |
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