What is the denominator to be used while calculating Trade Receivables Turnover Ratio? Post category:Accountancy Reading time:1 mins read SOLUTION Denominator is Average Trade Receivables (or Receivables)Average Trade Receivables = Opening Trade Receivables + Closing Trade Receivables / 2. 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 numerator to be used in Trade Receivables Turnover Ratio? Next PostWhat is the significance of Trade Receivables Turnover Ratio? You Might Also Like State with reason whether repayment of long-term loan will result in increase, decrease or no change of debt-equity ratio. October 3, 2022 Following is the Balance Sheet of Arvind and Balbir as at 31st March, 2019: July 26, 2022 Midee Ltd. invited applications for issuing 27,000 shares of Rs. 100 each payable as follows Rs. 50—per share on application; Rs. 10—per share on allotment and Balance—on First and Final call. Applications were received for 40,000 shares. Full allotment was made to the applicants of 7,000 shares. The remaining applicants were allotted 20,000 shares on pro-rata basis. Excess money received on applications was adjusted towards allotment and call. Asha, holding 600 shares was belonged to the category of applicants to whom full allotment was made, paid the call money at the time of allotment. Ankur, who belonged to the category of applicants to whom shares were allotted on pro rata basis did not pay anything after application on his 200 shares. Ankur’s shares were forfeited after the First and Final call. These shares were later reissued at Rs. 105 per share as fully paid-up. Pass necessary journal entries in the books of Midee Ltd. for the above transactions, by opening Calls-in-Arrears and Calls-in-Advance Accounts wherever necessary. July 14, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
State with reason whether repayment of long-term loan will result in increase, decrease or no change of debt-equity ratio. October 3, 2022
Midee Ltd. invited applications for issuing 27,000 shares of Rs. 100 each payable as follows Rs. 50—per share on application; Rs. 10—per share on allotment and Balance—on First and Final call. Applications were received for 40,000 shares. Full allotment was made to the applicants of 7,000 shares. The remaining applicants were allotted 20,000 shares on pro-rata basis. Excess money received on applications was adjusted towards allotment and call. Asha, holding 600 shares was belonged to the category of applicants to whom full allotment was made, paid the call money at the time of allotment. Ankur, who belonged to the category of applicants to whom shares were allotted on pro rata basis did not pay anything after application on his 200 shares. Ankur’s shares were forfeited after the First and Final call. These shares were later reissued at Rs. 105 per share as fully paid-up. Pass necessary journal entries in the books of Midee Ltd. for the above transactions, by opening Calls-in-Arrears and Calls-in-Advance Accounts wherever necessary. July 14, 2022