Average collection period is -

Average Collection Period represents the average number of days taken by a business to collect payment from its debtors.

The formula is:

Average Collection Period = $\frac{\text{Total Debtors}}{\text{Credit Sales}} \times 365$ days

Calculating Total Debtors:

Total Debtors = Trade Debtors + Bills Receivable

Total Debtors = Rs. 59,000 + Rs. 48,000 = Rs. 1,07,000

(Bills Receivable represent amounts receivable from customers, so they are included in total debtors)

Assuming Credit Sales:

Since credit sales are not separately given, Revenue from Operations is treated as Credit Sales.

Credit Sales = Rs. 8,75,000

Calculating Average Collection Period:

Average Collection Period = $\frac{1,07,000}{8,75,000} \times 365$

= $0.1223 \times 365$

= $44.64$ days

= 45 days (rounded to nearest value)

This indicates that the business takes approximately 45 days on average to collect cash from its credit customers.