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Accountancy · 2026 · 4 marks
CBSE 2026 · Region 3 · Set 1 · Q33
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 $\displaystyle 40$%ORFrom 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.
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 ($\displaystyle 1$)
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 $\displaystyle 10,00,000$
=
`$\displaystyle 80,000$ ($\displaystyle 1$)
=
Net Profit before Interest and Tax $\displaystyle 4,00,000$ + $\displaystyle 80,000$
=
`$\displaystyle 4,80,000$ ($\displaystyle 1$/$\displaystyle 2$)
=
Interest Coverage Ratio $\displaystyle 4,80,000$
$\displaystyle 80,000$
= $\displaystyle 6$ times
(1)
Q. From the following information…
Ans.
=
Inventory Turnover Ratio Cost of Revenue from Operations ($\displaystyle 1$)
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 $\displaystyle 100$/$\displaystyle 125$
= `$\displaystyle 12,00,000$ ($\displaystyle 1$)
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 ($\displaystyle 1$)
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CBSE Class 12 Accountancy past-paper question from the 2026board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.