What is trade finance
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Answer / azeem gill
All those loan facilities provided by the lenders (usually
banks) to support the trade activity mainly import or
export of goods are individually called trade finance.
e-g Letter of Credit,Letter of Guarantee, Finance against
imported marchandise
| Is This Answer Correct ? | 47 Yes | 8 No |
Answer / guest
trade finance is selling goods from one point to anther
point also included impor and emxpor
| Is This Answer Correct ? | 31 Yes | 18 No |
Answer / srinivas.s
Trade finance is the monitory fund which helps the business to carry out the daily/recurring activities like,purchase of raw-mat etc.
| Is This Answer Correct ? | 12 Yes | 12 No |
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4 Answers Chartered Accountant,
The following figures relate to the trading activities of M/s ABC Traders Ltd for the year ending 31 March 2004. Particulars Amount (Rs) Sales 5,20,000 Opening stock 76,250 Purchases 3,22,250 Closing stock 98,500 Sales return 20,000 Selling and Distribution Expenses Salaries 15,300 Advertising 4,700 Travelling 2,000 Administrative Expenses Salaries 27,000 Rent 2,700 Stationery 2,500 Depreciation 9,300 Other charges 16,500 Provision for tax 4,000 Non Operating Income Dividend on shares 9,000 Profit on sales of shares 3,000 Non Operating Expenses Loss on sale of fixed asset 4,000 You are required to: (i) Arrange the above figures in a form suitable for analysis. (ii) Show separately the following ratios. Net profit ratio Operating ratio Stock turnover ratio
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A and B are partners sharing profits and losses in the ratio of 3:2 having the capital of Rs. 80,000 and Rs. 50,000 respectively. They are entitled to 9% p.a. interest on capital before distributing the profits. During the year firm earned Rs. 7,800 after allowing interest on capital. Profits apportioned among A and B is (a) 4,680 and 3,120. (b) 4,800 and 3,000. (c) 5,000 and 2,800. (d) None of the above.
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