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

Question 59 Chapter 4 of +2-B

Question 59 Chapter 4 of +2-B

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 Ratio Net Profit before Interest and Tax = Rs.2,50,000
Interest Rs. 50,000
  = 5 Times    

 

 

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)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

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)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

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

2 Book 3 min 225x300 - Question 59 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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