| Particulars | 31st March, 2018 (Rs.) | 31st March, 2019 (Rs.) |
| Sundry Debtors | 28,000 | 25,000 |
| Bills Receivable | 7,000 | 15,000 |
| Provision for Doubtful Debts | 2,800 | 2,500 |
Total Sales Rs. 1,00,000; Sales Return Rs. 1,500; Cash Sales Rs. 23,500.
SOLUTION
Net Credit Sales = Total Sales − Sales Return − Cash Sales
= 1,00,000 − 1,500 − 23,500
= 75,000
Average receivables = Opening Receivables + Closing Receivables / 2
Average receivables = 28,000 + 7,000 + 25,000 + 15,000 / 2
= 37,500
Trade receivable turnover ratio = Net sales / Average receivables
Trade receivable turnover ratio = 75,000 / 37,500 / 2
= 2 Times