The following information is available:
Trade Receivables Turnover Ratio = 4 times
Gross Profit Ratio = 20%
Gross Profit for the year was ₹5,00,000
Bills Receivables = ₹60,000
Net Profit (after) Tax Ratio 12%
Tax Rate is 50%
10% Long-term Borrowings = ₹12,00,000
Shareholders' Funds are ₹ 4,00,000
Non-current Liabilities are ₹18,00,000
Sale of goods on credit only.

How much amount will trade debtors make?

₹565000

Trade Receivable Turnover ratio = Net Credit Revenue from Operations/Average Trade Receivable

Trade receivables= 2500000/4= ₹625000
Trade debtors= Trade receivables - bills receivables
                   = 625000-60000
                    = ₹565000

Gross profit= 20%= ₹500000
So, sales= 500000X100/20
            = ₹2500000