Trade Receivables include both Trade Debtors and Bills Receivable.
Trade Receivables = Trade Debtors + Bills Receivable
Trade Receivables = 59,000 + 48,000 = Rs. 1,07,000
The formula for Trade Receivable Turnover Ratio is:
$Trade Receivable Turnover Ratio=Average Trade ReceivablesNet Credit Revenue from Operations
Since only the closing balance of trade receivables is given, we use it as the average trade receivables.
Trade Receivable Turnover Ratio = 1,07,0008,75,000
Trade Receivable Turnover Ratio = 8.18 times
The revenue from operations is assumed to be credit sales as no cash sales information is provided. Bills Receivable represent amounts receivable from customers, similar to trade debtors, and both form part of trade receivables when calculating this ratio.