Calculate amount of opening trade receivables and closing trade receivables from the follwing figures:
Trade receivables turnover ratio, 4times
cost of revenue form opertion (cost of goods sold),Rs 640000
gross profit ratio, 20%
Closing trade receivables were rs 20000 more than in the beginning
cash sales being `33(1)/(3)%` of credit sales.

Explanation

sales =cost of revenue from operations (cost of goods sold)+profit
Let sales =Rs 100, gross profit =Rs 20
cost of revenue from operations (cost of goods sold )=Rs 100-Rs 20 =Rs 80
In the cost of revenue form operations (cost of goods sold) is Rs 80 then sale s=Rs 100
If the cost of revenue from operations (cost of goods sold) is Rs 640000., then
sales =`(Rs 640000xx100)/(80)=Rs 800000`
Total sales = cash sales + credit sales
Let the credit sales be x, cash sales `=x/3`
`Rs 800000=(x)/(3)+x or 3x+x=Rs 24000000`
x=Rs 6000000(credit sales)
Trade receviables trunover ratio = `("credit revenue from operations i.e net credit slaes")/("average trade receviables")`
average trade receivables =`-("opening trade receivables + closing trade receivables")/(2)`
Let opening trade receivables be y, closing trade receivables =y+ Rs 20000
`4(Given)=((Rs 600000)/(Y+Y+Rs 20000))/(2)`
4Y+4Y+Rs 800000=Rs 1200000
8Y =Rs 1120000
Y=Rs 140000 (opening trade receivables)
Closing trade receivables =opening trade receivables+Rs 20000
=Rs 140000+Rs 20000=Rs1600000