Kobor TVET College

Account and Budget Support (ABS) Level-III Practical Internal Assessment

Name _____________________________ Id.no._____ sign.____

Project One

The following data are taken for Waliin Gudannaa company

1. Balance per bank statement dated December 31, 20015 …………. Birr 8,900.00
2. Beginning cash balance dated December 1,20015 ………………..…..Birr 4,000.00
3. Total cash received during the month of December……………..….. Birr 9,018.00
4. Total cash paid during the month of December………………….……..…….. Birr
4,100.00
5. Cash deposited on December 31 as birr 2,600.00 not shown on the bank statement.
6. Total checks birr 2,100.00 as cash disbursement not shown on the bank statement.
7. The bank credited the company account with the birr 2,000.00 proceeds of non- interest
bearing note which was collected from its customer. For service rendered the bank
charges birr 20.00
8. The company has received two checks from two customers which worth birr 150.00 and
1015 that could not been accepted by bank.
9. Walin Guddanaa Company has credited for interest earned on the its checking account
,birr 40.00
10. Birr 8,495.00 which is received by bank from Walin Guddana Company has been
recorded erroneously as Birr 8,095.00.
11. The accountant of Walin Guddanaa Company has recorded in the cash receipt journal
Birr 69.00 erroneously for Birr 96.00.
Project Two

3) The following 10 selected transactions and events of Mr. Abebe a sole proprietor
consulting business named as Fast Forwards, in its first month of operations.
1. On Dec 1, Abebe invests $30,000 cash in a bank account opened under the name
of FastForwards.
2. On Dec 2, FastFarwards pays $2,500 cash to buy supplies.
3. On Dec 3, FastFarwards pays $26,000 cash to acquire equipment.
4. On Dec 5, FastFarwards purchases $7,100 on credit from a supplier.
5. On Dec 6, FastForward provides consulting services and immediately collects $4,200
cash.
6. On Dec 16, FastForwards pays $1,000 cash for December rent and also pays biweekly
$700 cash for employee salary.
7. On Dec 17, FastForwards provides consulting services of $1,600 and rents its test
facilities for $300. The customer is billed $1,900 for these services.
8. On Dec 27, FastForwards receives $1,900 cash from the client billed in transaction (7)
above
9. On Dec 28, FastForwards pays $900 cash as partial payment for its earlier $7,100
purchases of Supplies on account (transaction 4), leaving $ 6,200 unpaid.
10. On Dec 31, Abebe withdraws $600 cash from FastForward for personal use
Required: a. Pass the journal entry
b. Prepare the income statement and balance sheet