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Accountancy · 2026 · 4 marks
CBSE 2026 · Region 2 · Set 1 · Q33
The following information has been obtained from the books of Naval Ltd. Trade receivables turnover ratio of the company is 4 times, cost of revenue…
The following information has been obtained from the books of Naval Ltd. Trade receivables turnover ratio of the company is $\displaystyle 4$ times, cost of revenue from operations ₹ $\displaystyle 6,40,000$ , gross profit ratio $\displaystyle 20$%, closing trade receivables were ₹ $\displaystyle 20,000$ more than that in the beginning, cash revenue from . . $\displaystyle 1$ . . . operations being $\displaystyle 33$ - % of credit revenue from operations. Calculate its $\displaystyle 3$ opening and closing trade receivables.
Marking-scheme solution
Trade Receivables Turnover Ratio = Credit Revenue from Operations
Average Trade Receivables
Gross Profit ratio is $\displaystyle 20$%
Gross Profit = Revenue from operations - Cost of revenue from operations
∴ Cost of revenue from operations = Revenue from operations - Gross Profit
Cost of Revenue from operations = ₹ $\displaystyle 6,40,000$
Assume Revenue from operations = X
Gross Profit = $\displaystyle 20$% of X
X – $\displaystyle 20$/$\displaystyle 100$ X = ₹ $\displaystyle 6,40,000$
X = ₹ $\displaystyle 6,40,000$ x $\displaystyle 100$/$\displaystyle 80$ = ₹ $\displaystyle 8,00,000$
∴ Revenue from operations =₹ $\displaystyle 8,00,000$
Alternatively, Revenue from operations can be calculated as-
Gross Profit ratio = $\displaystyle 20$% of Revenue from operations
= $\displaystyle 25$% of cost of Revenue from operations
∴ Gross profit = $\displaystyle 25$% of ₹$\displaystyle 6,40,000$ = ₹ $\displaystyle 1,60,000$
Revenue from operations = Cost of revenue from operations + Gross Profit
Revenue from operations = ₹$\displaystyle 6,40,000$ + ₹$\displaystyle 1,60,000$ = ₹$\displaystyle 8,00,000$
Revenue from operations = Cash Revenue from operations + Credit Revenue from
operations
$\displaystyle 1$
₹ $\displaystyle 8,00,000$ = Credit Revenue from operations + Credit Revenue from Operations
$\displaystyle 3$
₹ $\displaystyle 8,00,000$ = $\displaystyle 4$/$\displaystyle 3$ of Credit Revenue from Operations
∴ Credit Revenue from Operations = $\displaystyle 8,00,000$ x ¾ = ₹ $\displaystyle 6,00,000$
Trade Receivables. turnover ratio = $\displaystyle 4$ times
∴ $\displaystyle 4$ = $\displaystyle 6,00,000$
Average Receivables
Average Trade Receivables = ₹ $\displaystyle 1,50,000$
Average Trade Receivables = Opening Trade Receivables + Closing Trade Receivables
$\displaystyle 2$
Closing Trade Receivables = $\displaystyle 20,000$ + Opening Trade Receivables
⇨ $\displaystyle 1,50,000$ = ($\displaystyle 2$ Opening Trade receivables + $\displaystyle 20,000$) /$\displaystyle 2$
⇨ Opening Trade Receivables = ₹ $\displaystyle 1,40,000$
Closing Trade Receivables = ₹$\displaystyle 20,000$ + ₹ $\displaystyle 140,000$
= ₹$\displaystyle 1,60,000$
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CBSE Class 12 Accountancy past-paper question from the 2026 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.