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Accountancy · 2026 · 4 marks
CBSE 2026 · Region 3 · Set 3 · Q33
From the following information, calculate 'Interest Coverage Ratio': Shareholders' funds 30,00,000 8% Long-term debt 10,00,000 Net profit after tax ₹…
From the following information, calculate 'Interest Coverage Ratio' : Shareholders' funds $\displaystyle 30,00,000$ $\displaystyle 8$% Long-term debt $\displaystyle 10,00,000$ Net profit after tax ₹ $\displaystyle 2,40,000$ Tax Rate $\displaystyle 40$%
OR
From the following information, calculate 'Inventory Turnover Ratio' : Revenue from operations ₹ $\displaystyle 15,00,000$ Opening inventory ₹ $\displaystyle 2,00,000$ Gross profit is $\displaystyle 25$% of cost of revenue from operations. Closing inventory was $\displaystyle 2$ times the opening inventory.
Marking-scheme solution
Interest Coverage Ratio = Net Profit before Interest and Tax
Interest on Long Term Borrowings
Net Profit before Tax = Profit after Tax x $\displaystyle 100$/$\displaystyle 60$
Net Profit before Tax = $\displaystyle 2,40,000$ x $\displaystyle 100$/$\displaystyle 60$
= ₹$\displaystyle 4,00,000$
Interest on long term debt = $\displaystyle 8$/$\displaystyle 100$ x $\displaystyle 10,00,000$
= ₹$\displaystyle 80,000$
Net Profit before Interest and Tax = $\displaystyle 4,00,000$ + $\displaystyle 80,000$
= ₹$\displaystyle 4,80,000$
Interest Coverage Ratio = $\displaystyle 4,80,000$
$\displaystyle 80,000$
= $\displaystyle 6$ times
Q. From the following information…
Ans.
Inventory Turnover Ratio = Cost of Revenue from Operations
Average Inventory
Cost of Revenue from Operations = Revenue from Operations – Gross Profit
Cost of Revenue from Operations = $\displaystyle 15,00,000$ – $\displaystyle 25$/$\displaystyle 100$ x Cost of Revenue from
Operations
Cost of Revenue from Operations = $\displaystyle 15,00,000$ x $\displaystyle 100$/$\displaystyle 125$
= ₹$\displaystyle 12,00,000$
Average Inventory = Opening Inventory + Closing Inventory
$\displaystyle 2$
Opening Inventory = $\displaystyle 2,00,000$
Closing Inventory = $\displaystyle 2$ x $\displaystyle 2,00,000$
= ₹$\displaystyle 4,00,000$
Average Inventory = $\displaystyle 2,00,000$ + $\displaystyle 4,00,000$
$\displaystyle 2$
= ₹$\displaystyle 3,00,000$
Inventory Turnover Ratio = $\displaystyle 12,00,000$
$\displaystyle 3,00,000$
= $\displaystyle 4$ times
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CBSE Class 12 Accountancy past-paper question from the 2026 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.