T S Grewal Solutions 2026-27 [Class 12] – Ratio Analysis– Q 101 to 110

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Solution for Q 101 to 110 of Chapter 4 of Book 3 - Analysis of Financial Statements of T S Grewal Class 12 Accountancy 2026-27 are given below. The Chapter name is Ratio Analysis class 12. These Solutions are based on topics Trade receivables turnover ratio, calculation of opening and closing trade receivables and trade payables turnover ratio.

Working notes are given with each solution. These help in understanding the steps and are also important for board exams as marks are given for steps.Debt equity ratio is a key ratio is finfing the long term solvency of any business and is critical business health parameter. A higher debt equity ratio is generally considered unhealthy for business as it indicates higher dependency on external funds and future solvency problems may arise.

These solutions are also useful for CA Foundation, CS Foundation and CMA Foundation students. The solutions will be helpful for students as well as teachers teaching class 12 accounts.

Question 101

Step 1

Let the credit sales be x
Cash sales will be 0.25x

Total Sales	=	Credit sales		+	cash sales
1500000	=	x		+	0.25x

x	=	1500000		/	1.25

	=	1200000

Credit sales	=	1200000

Step 2
Average	=	(Opening		+	Closing	/	2
Trade Receivables		Trade Receivable			Trade Receivable)
		(400000-200000)		+	400000	/	2

	=	200000		+	400000	/	2

	=	300000

Step 3
Trade Receivables	=	Net Credit Sales		/	Average Trade Receivables
Turnover Ratio		1200000		/	300000

	=	4	Times

▶ Video Solution: Coming Soon

Question 102

Step 1

Debt Collection	=	12	/	Trade receivables turnover ratio
Period
2	=	12	/	Trade receivables turnover ratio

Trade receivables	=	12	/	2
turnover ratio
	=	6	times

Step 2
Trade Receivables	=	Net Credit	/	Average Trade Receivables
Turnover Ratio		Sales
6		720000	/	Average Trade Receivables

Average Trade	=	720000	/	6
Receivables

Closing Trade	=	120000
Receivables

▶ Video Solution: Coming Soon

Question 103

Step 1

Debt Collection Period	=	360	/	Trade receivables turnover ratio
36	=	360	/	Trade receivables turnover ratio

Trade receivables	=	360	/	36
turnover ratio
	=	10

Step 2
Trade Receivables	=	Net Credit Sales	/	Average Trade Receivables
Turnover Ratio
10		400000	/	Average Trade Receivables

Average Trade	=	400000	/	10
Receivables
	=	40000

Step 3

Let the opening trade receivables be x

Average Trade	=	(Opening		+	Closing	/	2
Receivables		Trade Receivable			Trade Receivable)
40000		x		+	x + 6000	/	2

80000	=		2x	+	6000	/	2

2x	=	80000		-	6000

x	=	74000		/	2

	=	37000

Opening trade receivables	=	37000

Closing Trade receivables	=	43000
		(37000+6000)

▶ Video Solution: Coming Soon

Question 104

Case 1
Trade Receivables	=	Net Credit Sales		/	Average Trade Receivables
Turnover Ratio		400000		/		100000

	=	4	Times

Case 2
Total Sales	=	Credit sales		+	cash sales
3000000	=	x		+	600000

Credit Sales	=	3000000		-	600000

	=	2400000

Now,
Average	=	(Opening		+	Closing		/	2
Trade Receivables		Trade Receivable			Trade Receivable)
		200000		+	600000		/	2

	=	400000

Trade Receivables	=	Net Credit Sales		/	Average Trade Receivables
Turnover Ratio		2400000		/		400000

	=	6	Times

Case 3
Step 1
Average	=	(Opening		+	Closing		/	2
Trade Receivables		Trade Receivable			Trade Receivable)
		50000		+		100000	/	2

	=	75000

Step 2
Gross Profit	=	Cost of Goods Sold		X	25%
		300000		X	25%

	=	75000

Step 3
Total Sales	=	Cost of Goods Sold		+	Gross Profit
		300000		+	75000

	=	375000

Step 4
Cash Sales	=	Total Sales		X	20%
		375000		X	20%

	=	75000

Step 5
Credit Sales	=	Total Sales		-	Cash Sales
		375000		-	75000

	=	300000

Step 6
Trade Receivables	=	Net Credit Sales		/	Average Trade Receivables
Turnover Ratio		300000		/		75000

	=	4	Times

Case 4
Step 1
Average	=	(Opening		+	Closing		/	2
Trade Receivables		Trade Receivable			Trade Receivable)
		90000		+		60000	/	2

	=	75000

Step 2
Let the Sales be		100
GP		20	(20%)
Cost of Goods Sold		80

Gross Profit	=	20 / 80 X 450000

	=	112500

Total Sales	=	Cost of Goods Sold		+	Gross Profit
		450000		+	112500

	=	562500

Step 3
Total Sales	=	Credit sales		+	cash sales
562500	=	x		+	0.25x

x	=	562500		/	1.25

Credit Sales	=	450000

Step 4
Trade Receivables	=	Net Credit Sales		/	Average Trade Receivables
Turnover Ratio		450000		/		75000

	=	6	Times

▶ Video Solution: Coming Soon

Question 105

Step 1
Trade Receivables	=	Net Credit Sales		/	Average	(As below)
Turnover Ratio					Trade Receivables
		800000		/	160000

	=	5	Times

Step 2
Average	=	(Opening		+	Closing	/	2
Trade Receivables		Trade Receivable			Trade Receivable)
		120000		+	200000	/	2

	=	160000

(i)

	Before	Adjusment	After
Net Credit Sales	800000		800000
Opening Trade Receivables	120000		120000
Closing Trade Receivables	200000	-40000	160000
Average Trade Receivables	160000		140000

Trade Receivables	5		5.71
Turnover Ratio

Increase

(ii)

	Before	Adjusment	After
Net Credit Sales	800000	80000	880000
Opening Trade Receivables	120000		120000
Closing Trade Receivables	200000	80000	280000
Average Trade Receivables	160000		200000

Trade Receivables Turnover Ratio	5		4.4

Decrease

(iii)

	Before	Adjusment	After
Net Credit Sales	800000	-20000	780000
Opening Trade Receivables	120000		120000
Closing Trade Receivables	200000	-20000	180000
Average Trade Receivables	160000		150000

Trade Receivables	5		5.2
Turnover Ratio

Increase

(iv)

No Impact of credit purchase on trade receivables turnover ratio

▶ Video Solution: Coming Soon

Question 106

Trade Receivables	=	Net Credit Sales	/	Average
Turnover Ratio				Trade Receivables

Step 1
Find Revenue from operations
Cost of revenue
from operations	=	640000
So , Revenue from operations	=	640000*100/80
	=	800000

Step 2
Find Credit revenue from
Operations

Let credit revenue from operations be x

Total Revenue from	=	Cash revenue	+	Credit revenue
Operations		from operations		from operations

800000	=	1/3x	+	x
800000	=	4/3x

x	=	800000*3/4
	=	600000

Step 3
Find Average trade Receivables
Trade Receivables	=	Net Credit Sales	/	Average
Turnover Ratio				Trade Receivables
4	=	600000	/	Average
				Trade Receivables
Average Trade	=	600000/4
Receivables
	=	150000

Step 4
Find opening and closing trade receivables

Let the opening trade receivables be x
closing trade receivables = x + 20000

Average Trade	=	(Opening Trade	+	Closing Trade	/	2
Receivables		Receivables)		Receivables)

150000	=	x	+	x+20000	/	2
300000	=	2x+20000
x	=	280000/2
	=	140000
Openign Trade receivables	=	140000
Closing trade receivables	=	140000+20000
		160000

▶ Video Solution: Coming Soon

Question 107

Step 1
Trade Receivables		=	Net Credit Sales		/	Average
Turnover Ratio						Trade Receivables
8			175000		/		x

Average trade		=	175000		/		8
receivables
		=	21875

Step 2
Average trade		=	(Opening		+	Closing		/	2
receivables			Trade Receivable			Trade Receivable)
21875			x		+	(x + 7000)		/	2

	2x	=	43750		-	7000

	2x	=	36750

	x	=	36750		/	2

Opening trade		=	18375
receivables

Closing Trade		=	25375	(Opening + 7000)
receivables

▶ Video Solution: Coming Soon

Question 108

Step 1
Let the revenue be		100
GP		25
Cost of goods sold		75		300000

Now,
We have to find Revenue (numerator) from Cost of Goods Sold (Denominator)

Revenue	=	100	/	75		X	300000

	=	400000

Step 2
Total Revenue		=	Credit Revenue		+	Cash Revenue
400000		=	x		+	1/3 x

4x		=	400000		X	3

x		=	1200000		/	4

Credit Revenue		=	300000

Step 3
Trade Receivables			=	Net Credit Sales		/	Average
Turnover Ratio							Trade Receivables
3			=	300000		/		x

Average trade receivables			=	300000		/	3

			=	100000

Step 2
Average			=	(Opening		+	Closing		/	2
Trade Receivables				Trade Receivable			Trade Receivable)
100000				(x		+	(x + 3x))		/	2

	5x		=	200000

	x		=	200000		/	5

	x		=	40000

Opening trade receivables			=	40000

Closing Trade receivables			=	160000	(Opening + 3 times opening)
					(40000+120000)

▶ Video Solution: Coming Soon

Question 109

Step 1
Credit revenue	=	Cost of Goods Sold	+	Gross Profit		-	Cash Sales
from operations
	=	350000	+	150000		-	200000

	=	300000

Step 2
Trade Receivables	=	Net Credit Sales	/	Average Trade Receivables
Turnover Ratio
3	=	300000	/		x

Average	=	300000	/	3
Trade Receivables
	=	100000

Case 1
Step 3
Average	=	(Opening		+	Closing	/	2
Trade Receivables		Trade Receivable			Trade Receivable)
100000		x		+	(x + 100000)	/	2

2x	=	(100000 X 2)		-	100000

x	=	100000		/	2

x	=	50000

Opening trade	=	50000
receivables

Closing Trade	=	150000	(Rs 1 Lakh more than opening)
receivables

Case 2
Step 3
Average		=	(Opening		+	Closing	/	2
Trade Receivables			Trade Receivable			Trade Receivable)
100000		=		x	+	3x	/	2

	4x	=	100000		X	2

	x	=	200000		/	4

	x	=	50000

Opening trade		=	50000
receivables

Closing Trade		=	150000		(3 times of opening)
receivables

Case 3
Step 3
Average		=	(Opening		+	Closing	/	2
Trade Receivables			Trade Receivable			Trade Receivable)
100000			x		+	(x+3x)	/	2

5x		=	100000		X	2

x		=	200000		/	5

x		=	40000

Opening trade		=	40000
receivables

Closing Trade		=	160000
receivables			(40000+120000)

▶ Video Solution: Coming Soon

Question 110

Step 1
Credit Purchases	=	Purchases	-	Purchase Returns		-	Cash Purchases
		950000	-	45000		-	100000

	=	805000

Step 2
Average	=	(Opening		+	Closing		/	2
Trade Payables		Trade Payable			Trade Payable)
		(125000+10000)		+	(90000+5000)

	=	115000

Step 3
Trade Payables	=	Net Credit		/	Average Trade
Turnover Ratio		Purchases			Payables
		805000		/	115000

	=	7	Times

Note : Average debt payment period not asked in question. Given here only for information

▶ Video Solution: Coming Soon

Average debt

Trade Payables Turnover Ratio

payment period