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
The first number is four times 60% of the second number. If the second number is increased by 5, the first number becomes twice the new value of the sec...
A number when divided by 21 gives a remainder of 15. What will be the remainder when twice that number is divided by 21?
- Find the least 5-digit number which is perfectly divisible by 14, 21, 35 and 42.
- A fraction 'k' is such that when it is subtracted from (6/7), the result is (2/5). What will be the remainder when the denominator of 'k' is divided by its...
Product of two consecutive positive even numbers is 840. Find the sum of the digits of the two numbers.
The Indian cricket team scored 188 runs in their 20-over match against Australia. By the end of the 13th over, Australia has scored 107 runs. What is th...
A monkey climbs a tower of height 60 m. It climbs 5m above in 1st minute and 4m below in 2nd minute. In how many minutes monkey wi...
- ‘N’ be the highest 3-digit number which leaves a remainder of 3 when divided by 4, 6, and 9. What is the least number that must be added to ‘N’ to ...
Product of two consecutive positive even numbers is 624. Find the sum of the digits of the two numbers.
The number of chocolates with ‘Rohan’ and ‘Sohan’ together is 20 more than that with ‘Mohan’, while the number of chocolates with ‘Sohan�...
