1. “Management accounting is nothing else but financial and Cost Accounting tailored to the requirements of management.” Defend or Criticise the statement.
Give reasons.
2. Two Companies have the same amount of working capital. The current debt paying ability of one company is much weaker than that of the other explain
your views how this could occur.
3. From the following information you are required to prepare a Balance Sheet.

 a. Current Ratio – 1.75
b. Liquid Ratio – 1.25
c. Stock Turnover Ratio [cost of sales/closing stock]–9
d. Gross Profit Ratio – 1/3 % on cost of sales
e. Debt collection period – 1.5 months
f. Reserves and surplus to capital – 2
g. Turnover to fixed assets – 1.2
h. Capital Gearing Ratio – 0.6
i. Fixed Assets to Net Worth – 1.25
j. Cost of sales – ` 9,00,000/-
4. From the following summarised Balance Sheets of Jamaal Structural Ltd., as on 31st March 2014 and 31st March 2015, prepare:
(i) a statement of sources and application of funds
(ii) a statement of changes in working capital.
Liabilities As on  31.3.14 As on 31.3.15 Assets 31.3.14 As on 31.3.15 As on Share capital 3,00,000 4,50,000 Fixed Assets 3,50,000 5,50,000 Reserve and surplus 1,50,000 3,50,000 Investment 50,000 30,000  Long-terms Liabilities 1,25,000 - Machinery 2,15,000 75,000 Sundry Creditors 2,25,000 2,75,000 Stock 15,000 2,75,000 Provision for tax 50,000 95,000 Debtors 1,75,000 1,50,000 Prepaid Expenses 20,000 45,000 Miscellaneous Expendi., 25,000 45,000
8,50,000 11,70,000 8,50,000 11,70,000  Additional Information:
1. Depreciation written off during 2015 was ` 80,000/-
2. On 31st March 2015, accumulated depreciation on fixed assets amounted to `1,75,000/- and on 31st March 2014, ` 1,25,000/-.

3. Machinery costing `50,000/-, accumulated depreciation there on being ` 3,000/- was discarded and written off during 2015.
4. During the current year. Investment costing `10,000/- were sold for `12,500/-.
5. Dividend paid during the year amounted to `32,500/-.