Read the following information carefully and answer the next 5 questions:
| PARTICULARS | AMOUNT (₹) |
| Revenue from operations | 8,75,000 |
| Creditors | 90,000 |
| Bills Receivables | 48,000 |
| Bills Payables | 52,000 |
| Purchases | 4,20,000 |
| Trade debtors | 59,000 |
Calculate Trade Receivables Turnover ratio.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 8.18 times
Trade receivables turnover ratio = Net credit revenue from operations ÷ Average trade receivables
Trade receivables = Trade debtors + Bills receivable
= ₹59,000 + ₹48,000
= ₹1,07,000
Ratio = ₹8,75,000 ÷ ₹1,07,000
= 8.18 times
Opening figures are not given, so the year-end receivables are used as they are (not divided by 2). A turnover ratio is stated in “times”, not as a percentage or “: 1”.
NCERT (2026-27 edition):
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