The correct answer is D. Rs. 1,08,00,000.
The average collection period is the average number of days it takes a company to collect its accounts receivable. It is calculated by dividing the accounts receivable by the average daily sales.
The average book receivables is the amount of money that a company is owed by its customers. It is calculated by taking the total accounts receivable and dividing it by the number of days in the period.
The total annual credit sales is the total amount of money that a company sells on credit in a year. It is calculated by taking the average daily sales and multiplying it by the number of days in a year.
To calculate the total annual credit sales, we can use the following formula:
Total annual credit sales = Average daily sales x Number of days in a year
Average daily sales = Average book receivables / Average collection period
Number of days in a year = 365 days
Therefore, the total annual credit sales is:
Total annual credit sales = Rs. 60,000 / 15 days x 365 days = Rs. 1,08,00,000
Option A is incorrect because it is the total annual sales, not the total annual credit sales.
Option B is incorrect because it is the total annual credit sales divided by 2.
Option C is incorrect because it is the total annual credit sales multiplied by 4.