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Accountancy · 2025 · 4 marks
CBSE 2025 · Region 4 · Set 1 · Q33
From the following information, calculate Interest Coverage Ratio:
From the following information, calculate Interest Coverage Ratio :
| Particulars | Amount (₹) |
| Profit after Tax | $\displaystyle 6,30,000$ |
| Tax Rate | $\displaystyle 30$% |
| $\displaystyle 15$% Debentures | $\displaystyle 20,00,000$ |
| Equity Share Capital | $\displaystyle 10,00,000$ |
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 $\displaystyle 5$/$\displaystyle 4$
Revenue from Operation = ₹$\displaystyle 10,00,000$
• 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
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CBSE Class 12 Accountancy past-paper question from the 2025 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.