Calculate opening and closing trade receivables from the following information:
Cash revenue from operations= `1//3rd` of credit revenue from operations
Cost of revenue form operations=Rs 360000
Gross profit =25% of revenue from operations
Trade receivables at the end were 3 times that of in the beginning
Trade receivables Turnover Ratio 3 times.

Explanation

Total revenue from opertions (i.e slaes)
=Cost of revenue from operation +gross profit (Note 1)
`=Rs 360000+(Rs 360000xx1//3)=Rs 480000`
Credit revenue from operations=Rs 360000(note 2)
Trade receivable trunover ratio =`("Creidit Revenue form operation")/("Average trade receivables")`
`3-(Rs 36000)/("Average trade receivables")`
Average trade reveivable =`(Rs 360000)/(3)=Rs12000`
Calculation of opening and closing trade receivables:
Let opening trade receivables =x
therefore closing trade receivable =3x
Average trade receivables =`("opening trade receivables+ closing trade receivables")/(2)`
`Rs 120000=(x+3x)/(2)`
`Rs 2400000=4x`
`x=(Rs 240000)/(4)=Rs 60000("opening Rade Receivables")`
Closing Trade receivables =3x=`Rs 60000xx3=Rs 180000`