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Question 59 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 59 Chapter 4 of +2-B
Question No. 59- Chapter No.4 - T.S. Grewal +2 Book Part B

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Question 59 Chapter 4 of +2-B

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Interest Coverage Ratio

59. From the following information, calculate Interest Coverage Ratio: Profit
after Tax Rs. 1,70,000; Tax Rs. 30,000; Interest on Long-term Funds Rs. 50,000

 

The solution of Question 59 Chapter 4 of +2-B: –

Net profit before interest and tax=Profit after Tax + Tax + Interest on Long-term Funds
 =Rs. 1,70,000 + 30,000 + 50,000
 =Rs. 2,50,000
Interest=Rs. 50,000



Proprietary RatioNet Profit before Interest and Tax=Rs.2,50,000
InterestRs. 50,000
 =5 Times  

 

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Balance Sheet: Meaning, Format & Examples

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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statements

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