Question 31 A Chapter 4 of +2-B
Table of Contents
II. Solvency (Long-Term) Ratio
31A. (Interest Coverage Ratio) Net profit before interest and tax ₹ 2,00,000, 10% long term debt ₹ 5,00,000. Calculate interest coverage ratio.
The solution of Question 31 A Chapter 4 of +2-B: –
Interest Coverage Ratio | = | Net profit before interest and tax |
Interest |
Proprietary Ratio | = | ₹ 2,00,000 |
₹ 50,000* | ||
= | 4 times |
* Interest | = | 10% Interest on Long term debt | ||
= | ₹ 5,00,000 | X | 10 | |
100 | ||||
* Interest | = | ₹ 50,000 |
What are Liquidity Ratios – Formulas and Examples
Comment if you have any question.
Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

Leave a Reply