Question
A company has annual credit sales of ₹36 crore. Its
trade receivables as on 31st March 2025 are ₹3.6 crore, of which ₹0.6 crore are more than 6 months old and considered doubtful. The company allows a credit period of 30 days to its customers. Based on this information, what is the Average Collection Period for good receivables only? Consider 360 days in a year.Solution
Step 1: Use only good trade receivables • Total receivables = ₹3.6 crore • Less: Doubtful receivables (>6 months old) = ₹0.6 crore • Good receivables = ₹3.0 crore Step 2: Formula – Average Collection Period Average Collection Period = (Average Receivables/ Annual Credit Sales) × 365 • Average Receivables = ₹3.0 crore • Annual Credit Sales = ₹36 crore =(3.0/ 36)×360=30 days
If a group of 20 boys and 10 girls can finish a task in 50 days, and a team of 8 girls alone can complete the same task in 120 days, how long will it ta...
X can do a piece of work in 36 days. He worked at it for 6 days and then Y finished it in 20 days. In how many days can X and Y together finish the work...
Arjun, Bharat and Chintu together can complete a task in 8 days. Bharat is 25% less efficient than Arjun. Arjun and Chintu together can complete the tas...
- P, Q and R together can complete a task in 12 days. Q and R together can finish it in (72/5) days, and R alone can do half the task in 8 days. What is the ...
Virat can do a piece of work in 28 days and Sachin can do the same work in 42 days. If Virat works for 4 days and got Rs. 1800, and the remaining work w...
A can do 1/4th of a work in 15 days, B can do the 25% of the work in 20 days & C can do 1/5th of the work in 15 days. Who will complete the work fir...
Abhay, Beer, and Tittu have individual work completion times of 12 days, 24 days, and 36 days, respectively. They Started working together on a task. Af...
Before servicing, a car runs at a speed of 20 km/hr while after servicing, it runs at a speed of 30 km/h. After servicing the car covers a certain dista...
It takes a team of either 20 boys or 35 girls, 27 days to achieve a sales target. How many days will it take for a team consisting of 21 boys and 42 gir...
Efficiency of 'D' is 80% more than that of 'E' and 25% less than that of 'F'. They start working together, but 'E' leaves after 3 days, and the remainin...
