Read the passage carefully and answer the next five questions (value in fraction is to be rounded off to the nearest value).
| Particulars | Amount (₹) |
| Revenue from operations | 8,75,000 |
| Creditors | 90,000 |
| Bills receivable | 48,000 |
| Bills payable | 52,000 |
| Purchases | 4,20,000 |
| Trade debtors | 59,000 |
Trade Receivable Turnover Ratio is-
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 8.18 times
The trade receivables turnover ratio compares revenue from operations with trade receivables (debtors + bills receivable). Only year-end figures are given, so they are used as the average without dividing by 2.
Trade receivables = Rs. 59,000 + Rs. 48,000 = Rs. 1,07,000
Trade Receivables Turnover Ratio = Rs. 8,75,000 ÷ Rs. 1,07,000
= 8.18 times
NCERT (2026-27 edition):
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