ACCOUNTING TEST

Student Name: ………………………………………………………………………

Question Marks Score

Question 1 15

Question 2 22

Question 3 16

Question 4 12

Question 5 17

Question 6 32

Question 7 30

MPW
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The balance sheets of Lawless Ltd at 31 May 2008 and at 31 May 2007 are shown below.
Balance sheet
at 31 at 31 May
May 2007
2008
£000 £000
Non-current assets 25,686 21,650
Current assets
Inventories 4,050 3,560
Trade receivables 6,858 4,878
Cash and cash 25 1,670
equivalents
10,933 10,108
Total assets 36,619 31,758
Current liabilities
Trade payables (5,888) (8,808)
Tax liabilities (850) (500)
(6,738) (9,308)
Net current assets 4,195 800
Debentures (2015-2018) (3,500) (6,500)
Total liabilities 10,238 15,808
Net assets 26,381 15,950
Equity
Authorised share
capital
15,000 ordinary shares 15,000 15,000
of £1 each
Issue share capital
15,000 ordinary shares 15,000 10,000
of £1 each
Capital reserve
Share premium 5,000 3,500
Revenue reserve
Retained earnings 6,381 2,450
26,381 15,950

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Additional information
1 Non-current assets
Cost £000
At 1 June 2007 25,650
Additions 6,686
Disposal (2,000)
At 31 May 2008 30,336
Depreciation £000
At 1 June 2007 4,000
Charge for the year 1,850
Disposal (1,200)
At 31 May 2008 4,650
1 The proceeds from the disposal of non-current assets were £846,000.
2 Debenture interest paid for the year ended 31 May 2008 was £210,000.
3 Dividends paid during the year ended 31 May 2008 were £1,020.
REQUIRED
a) Prepare a statement of cash flows for the year ended 31 May 2008, using the format given in IAS7.
(30 marks)

End of Questions

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