✓ Board-verified
Accountancy · 2025 · 4 marks
CBSE 2025 · Region 4 · Set 2 · Q33
From the following information, calculate Interest Coverage Ratio : Amount Particulars ( ) $\displaystyle 3$ Profit after Tax $\displaystyle 6,30,000$ Tax Rate $\displaystyle 30$% $\displaystyle 15$% Debentures $\displaystyle 20,00,000$ Equity Share Capital $\displaystyle 10,00,000$ORCalculate the amount of Opening Trade Receivables and Closing Trade Receivables from the following information : Trade Receivables Turnover Ratio = $\displaystyle 5$ times Cost of Revenue from operations = ₹ $\displaystyle 8,00,000$ Gross Profit Ratio = $\displaystyle 20$% Closing Trade Receivables were ₹ $\displaystyle 40,000$ more than that in the beginning. $\displaystyle 1$ Cash sales were times of Credit sales. $\displaystyle 4$
OR
Calculate the amount of Opening Trade Receivables and Closing Trade Receivables from the following information : Trade Receivables Turnover Ratio = $\displaystyle 5$ times Cost of Revenue from operations = ₹ $\displaystyle 8,00,000$ Gross Profit Ratio = $\displaystyle 20$% Closing Trade Receivables were ₹ $\displaystyle 40,000$ more than that in the beginning. $\displaystyle 1$ Cash sales were times of Credit sales. $\displaystyle 4$Marking-scheme solution
•
Interest Coverage Ratio = Profit Before Interest and Tax
Interest on Long Term borrowings
•
Profit Before Tax = Profit After Tax x $\displaystyle 100$/$\displaystyle 70$
= $\displaystyle 6,30,000$ x $\displaystyle 100$/$\displaystyle 70$
= ` $\displaystyle 9,00,000$
•
Profit Before Interest and Tax = Profit Before Tax + Interest on Debentures
= $\displaystyle 9,00,000$ + $\displaystyle 3,00,000$
`
= $\displaystyle 12,00,000$
•
Interest Coverage Ratio = $\displaystyle 12,00,000$
$\displaystyle 3,00,000$
= $\displaystyle 4$ times
Q. Calculate the amount of Opening …………………………………….
Ans.
•
Trade Receivable Turnover Ratio = Net Credit Revenue from Operations
Average Trade Receivable
•
Revenue from Operation = Cost of Revenue from Operation + Gross Profit
Revenue from Operation = $\displaystyle 8,00,000$ + $\displaystyle 1$/$\displaystyle 5$ of Revenue from Operation
$\displaystyle 4$/$\displaystyle 5$ Revenue from Operation = $\displaystyle 8,00,000$
Revenue from Operation = $\displaystyle 8,00,000$ x $\displaystyle 5$/$\displaystyle 4$
`$\displaystyle 10,00,000$
Revenue from Operation =
•
Revenue from Operation = Cash Revenue from Operation + Credit Revenue from
Operation
$\displaystyle 10,00,000$ = $\displaystyle 1$/$\displaystyle 4$ Credit Revenue from Operation + Credit Revenue from Operation
$\displaystyle 10,00,000$ = $\displaystyle 5$/$\displaystyle 4$ Credit Revenue from Operation
$\displaystyle 10,00,000$ x $\displaystyle 4$/$\displaystyle 5$ = Credit Revenue from Operation
`$\displaystyle 8,00,000$ = Credit Revenue from Operation
•
$\displaystyle 5$ = $\displaystyle 8,00,000$
Average Trade Receivable
Average Trade Receivable = `$\displaystyle 1,60,000$
•
Average Trade Receivable = Opening Trade Receivables + Closing Trade Receivable
$\displaystyle 2$
Average Trade Receivable = Opening Trade Receivables + Opening Trade Receivable + $\displaystyle 40,000$
$\displaystyle 2$
$\displaystyle 1,60,000$ x $\displaystyle 2$ = $\displaystyle 2$ x Opening Trade Receivable + $\displaystyle 40,000$
$\displaystyle 3,20,000$ – $\displaystyle 40,000$ = $\displaystyle 2$ x Opening Trade Receivable
$\displaystyle 2,80,000$ / $\displaystyle 2$ = Opening Trade Receivable
`$\displaystyle 1,40,000$ = Opening Trade Receivable
`$\displaystyle 1,80,000$ = Closing Trade Receivable
More from Accounting Ratios
- The current ratio of Jack Ltd. is 3·2: 1 and the quick ratio is 1·5: 1. The excess of current assets over…2025
- The current assets of X Ltd. are ₹ 2,00,000 and its current liabilities are ₹ 1,50,000. If, its working…2023
- Prepare a 'Common S ize Balance Sheet' from the following B alance Sheet of Shree Ltd. as at 31st March,…2022
- Identify whi2024
- Identify and state the significance of any two ratios that are calculated to measure the efficiency of…2023
- From the following information, calculate 'Interest Coverage Ratio': Shareholders' funds 30,00,000 8%…2026
- The quick ratio of Theta Ltd. is 0.8:1. Which of the following transactions will result in decrease in this…2026
- Which of the following is not a Solvency Ratio?2023
CBSE Class 12 Accountancy past-paper question from the 2025board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.