From the following information Calculate Trade Receivable Turnover Ratio:
Revenue from Operations - 2,00,000
Cash Revenue from Operations- 80,000
Debtors as on 1st April 2020 - 40,000
Debtors as on 31st March 2021 - 20,000
Answer & explanation
Correct answer: option 1
T.R.T.R = Credit Revenue From Operations/ Average Trade Receivables
= 120000/30000
= 4 times
Credit Revenue = 2,00,000 - 80,000
= 1,20,000
Average Trade Receivables = (40000 + 20000)/2
= 30,000