Mercury Ltd. made Credit Sales of ₹ 4,00,000 during the financial period. If the collection period is 36 days and year is assumed to be 360 days, calculate:

Mercury Ltd. made Credit Sales of ₹ 4,00,000 during the financial period. If the collection period is 36 days and year is assumed to be 360 days, calculate:

(i) Trade Receivables Turnover Ratio;

(ii) Average Trade Receivables;

(iii) Trade Receivables at the end when Trade Receivables at the end are more than that in the beginning by ₹ 6,000.

[Ans.: (i) Trade Receivables Turnover Ratio = 10 Times: (ii) Average Trade Receivables = ₹ 40,000; (iii) Trade Receivables in the beginning = ₹ 37,000; Trade Receivbles at the end = ₹ 43,000.]