CODE7

Project1: prepar
epay rol
l andprocesspay ment
GIVENI NFORMATI ON
Wal i
yaCapi t
algoodsf i
nancialbusinesss/ cisafinancei
nstit
uti
oni nEthi
opiaengagedi
nhigher
purchaseandf i
nanciall
easeact ivit
iesf ormicroandsmal lenterpri
sethecombanyhasf our
staff.Fort hemont hofhaml e,2007t heaccount antofwal i
yacapi t
alpreparespay
rol
land
process t he paymentt hrough bank accountf oreach empl oy
ee,t he account
anthas the
foll
owi nginformati
ont opr epar
emegabi tpayrol
l
NO Empl oyeename Basicsalary Overti
me
.
1 Zelal
emTesf ahun Br.600.00 150
2 FekedeHai l
e 1200.00 480
3 Soli
anaDani el 3,000.
00 300
4 AyanaBer ya 5,000.
00 200

ADDI TIONALI NFORMATI ON:

 Cr editassociat i
oni s5%ofbasi csal ary
 Thecompanypai dal l
owance10%ofbasi csalar
yf oreachempl oy ee
 Al l
owanceofeachempl oyeei staxabl e
 Pensi oncont ributi
oni s11%f rom empl oyerand7%f r
om empl oy ee
 Al lemployeesar eper manent
 Bankser vi
cechar geofeachempl oy eesi s10birrpaidbytheempl oyer
Instruction:basedont heabov ei nfor mat iont hecandi dateisexpect edtoperformthe
foll
owi ngact i
vit
ies
Task1. 1preparepay r
ollsheetforthemont hofhami l
e2007
Task1. 2recordst hejournalentryfort hemont hofhami l
e2007
Task1. 3recordthej ournalentr
iesf ort hepay mentofpay rol
ll
iabi
li
ties
Project2:pr ocessandcal culatefi
nancialtransact i
onsandpr eparef
inancial r
eport
s
Giveninformat ion
Ethioplast i
cPLCi smanuf acturi
ngcompanypr oducespl asti
candsal est olocalmarkett
he
company ’
saccount ingr ecordsshowst hef oll
owi ngforthey earEndedDecember31.2014

Grosssal es……………………………. .Bi

rr3, 210,000
Adv ertisingexpendi tures……………. .68, 000
Beginni ngi nventory………………………. 256, 000
Depr eciat ion…………………………………78, 000
Endingi nv entory…………………………248, 000
Interestexpense………………………………. 64,000
Leasepay ment s………………………………. 52,000
Managementsal es………………………. .240,000
Mat erial pur chase……………………………. 2,425,000
R&DExpendi t
ure………………………………. .35,000
Repai rsandmai ntenancecost s……………. 22,000
Salesr et urnsandal lowance……………………. ..
48,000
Instruct i
on:undert hisprojectthecandi dateisexpectedtoperf
ormthefol
lowi
ngt
asksbased
ont hei nf ormat ionpr ovi
ded
Task2. 1:prepareincomest at ementf ortheyearendedDecember31,
2014
Task2. 2:calculat
etaxassumet hatthecompanyi sexpect
edtopay30%ofpr
ofi
t.
Project3.Pr ocesscashhol dingbal anceandcont rolaccount
Giveni nformat i
on
ADAr esear chanddev el opmentPLCi sacompanyengagedi nt hedev elopmentofst rategic
productwi thbusi ness, heal t
h, indust ryanddef ense.Thef oll
owi ngdat aper taint oADAr esear ch
anddev elopmentPLCaccount
1.Bal anceperbankst atementdat edmar ch31. 2015i sBr4, 204. 00
2.Bal anceoft hecashaccountont hecompanybooksasofmar ch31. 2015, isBr2, 855. 00
3.Bi r
r500Recei ptofmar ch31di dn’tappeari nthebankst at ement
4.Thef ollowi ngchecksi ssuedbyADAr esear chanddev elopmentOLCdi dn’tappeari nt he
mar ches’ bankst atement
CkNo.20Br300
CkNo. 21Br250
CkNo.22Br238
5.Anot eofBr1200andi nter estofBr25wer ecol lectedbyt hebankf orADAr esear chand
developmentPLCandi ncludedwi tht hebankst at ementascr editmemo.
6.I ncludedwi tht hebankst at ementi saBr150debi tmemof ornotsuf ficientf undcheck
7.Ser viceandcol lect ionchar gesf ort hemont hwer eBr50. 00
8.Cashpay mentt oasuppl i
eronaccountofBr148waser roneousl yr ecor dedbyt he
deposi torasBr184.
Inst ruction:undert hispr ojectt hecandi dat eisexpect edt oper formf ollowi ngt asksbased
ont heinf ormat i
onpr ov ided
Act ivit
y3. 1:pr epar ebankr econci liationasofmar ch31, 2018.
Act ivity3. 2:pr epar et henecessar yjour nalent ri
es
Project4:handl ef or eigncur r
ency ,transact ionandcal cul ate,tax
GIVENI NFORMATI ON
Belayabmot or sPLCi sengagedi nassembl yofcommer cialv ehi clesi mpor tanddi st ri
butionof
vari
oust ypeofmot orsv ehicle, heav yt ruckandmachi ner ieswi thaf tersalesser v i
ceonmar ch1.
2015t hecompanycashbal ancei ndicat edi nbankaccountwasbr .13, 550,500. 00.dur ingmar ch
thecompanyi mpor ted20di eselv ehi clemot orwithcy li
ndercapaci ty1300C. Cf rom Ger many
costingFOBEURO40, 000andbi r r31, 800f ori nsuranceand88, 200waspai df orfr eightt ot he
i
mpor tedgoods.
Additional informat i
on
Dutyandt axappl icabl eoni mpor t eddi esel vehi cl
einEt hiopia
 Dut yr ate35%
 Exci set ax30%
 VAT15%
 Surt ax10%
 Wi thhol dingt ax3%
EXCHANGERATEDURI NGTHEMONTH( CONSTANT)
SELLI NGBUYI NG
EUR22. 00 21. 57
INSTRUCTI ON:Undert hisuni tt hecandi dat ei sex pect edt oper formt hef ollowingact ivit
ies
basedont hei nfor mat ionpr ovided
Activit
y4. 1:det er mi net hecostoft hei mpor t
eddi eselv ehicl emot orbef oredut yandt ax
payabl e
Activit
y4. 2:cal cul atet ot aldut y ,exci se, VAT, Surt axandwi thhol di ngt axpay ableatt hetimeof
i
mpor t
Activit
y4. 3:basedont hedat agi v enabov edet erminecashi nt hebankatt heendoft hemont h.
Activit
y4. 4:det er mi net het ot alcostofeachi mpor teddi eselv ehicl
emot orwi thcy linder
capaci ty1300C. C
Accept
abl
eanswer

Pr
oject1

Act
ivi
ty1.
1pr
epar
epay
rol
lsheetf
ort
hemont
hofhami
l
e2007

Ear
ning Deduct
ions Netpay

Nameof Basi
c allowa Over t
otal I
ncome pensi
on Credi
t Tot
al
empl
oyee sal
ary nce t
ime t
ax associ
ati
o
n

Zelal
emTes 600 60 150 810 21 42 30 93 717
fahun

Fekaduhai
l
e 1200 120 480 1,
800 127.
50 84 60 271.
5 1528.
50
0

Sol
iana 3,
000 300 300 3,
600 417.
50 210 150 777.
5 28822.
50
Daniel 0

Ay
anaber
ya 5,
000 200 200 5,
700 860 350 250 1460 4240

Tot
al 9,
800 680 1,
13 11,
910 1,
426 686 490 2602 9308
0

Act
ivi
ty1.
2sal
aryexpense……………………………. 11,
910.
00

I
ncomet
axpay
abl
e……………… 1426
Pensi
onpay
abl
e…………………….
.1764
Ser
vicechar
gepay
abl
e…….
..
..
..
..40.
00
Cr
edi
tassoci
ati
onpay
abl
e…….
..
490.
00
Cash……………………………………………9308

(
Empl
oyerpensi
on11%*
9800=1078)
Tot
alpensi
onpay
abl
e=686+1078=1764
Act
ivi
ty1.
2

 I
ncomet
axpay
abl
e……………………….
1426
Cash…………………………………….1426

 Pensi
onpay
abl
e…………………………….1764
Cash……………………………………….
1764
  Bankser
vicechar
ge………………………….
.40.
00
Cash……………………………………….
.40.
00

 Cr
edi
tassoci
ati
onpay
abl
e………………….
.490.
00
Cash…………………………………………….
.490.
00
Pr
oject2

Act
ivi
ty2.
1

Et
hiopl
ast
icPLC

I
ncomest
atement

Fort
heendedDecember31,
2014

Netsal
es………………………………………………………Br
.3,
162,
000

Costofgoodssol
d…………………………………………………2,
433,
000

Gr
osspr
ofi
t…………………………………………………Br
.729,
000

Oper
ati
ngexpenses(
excl
udi
ngdepr
eci
ati
on)
……………417,
000]

Depr
eci
ati
on……………………………………………………………….
78,
000

Oper
ati
ngpr
ofi
t………………………………………………………234,
000

I
nter
estexpense………………………………….
64,
000

Ear
ningsbef
oret
ax……………………………………….
170,
000

Taxes…………………………………………………………….
.51,
000

Neti
ncome…………………………………………………………119,
000

Act
ivi
ty2.
2ear
ningsbef
oret
axes170,
000*
30%=51,
000

Pr
oject3

Act
ivi
ty3.
1:

ADARESEARCHANDDEVELOPMENTPLC

BANKRECONCI
LATI
ON

MARCH31,
2015

Bal
anceperbankst
atement……………………………………………………….
br.
4,204
Adddeposi
tint
ransi
t………………………………………………………………………500

Subt
otal
………………………………………………………………………………………….
.4,
704

Less:
checkout
standi
ng

No.20………………….
.br
.300

No.21………………….
.br
.250

No.
22…………………….
br.238 788

Adj
ust
edbal
ancemar
ch31,
2015……………………………………………….
.……………………br
.3916

Bal
anceperdeposi
torl
edger
…………………………………………………………….
2855

Add:
Not
eandi
nter
estcol
l
ect
ion…………………1225

Deposi
tor
ser
ror
……………………………………….
36

Subt
otal
…………………………………………………………………….
.br
.4116

Less:
NSFcheck………………………………….
.……………150

Bankser
vicechar
ge……………………….
.50

Adj
ust
edbal
ancemar
ch31,
2015……………………………………………………………………….
br.3916

Act
ivi
ty3.
2jour
nal
ent
ry

1.Cash……………………br
.1,
225
N/
Recei
vabl
e…………br
.1,
200

I
nter
esti
ncome……………br
.25

Tor
ecor
dcol
lect
ionofnot
eandi
nter
est

2.Ser
vicechar
gemi
scel
l
aneousexpense….
.br
.50
Cashi
nbank…………………………………………….
br.
50
Ther
ecor
dbankser
vicechar
ge
3.Accountr
ecei
vabl
e………………br
.150
Cash……………………………………………….
.br
.150
Tor
ecor
dNSFcheckr
etur
ned
4.Cash……………………………………….
.br
.36
Accountpay
abl
e……………………………br
.36
Tocor
rectaner
rorbyt
hedeposi
tor
Pr
oject4

ACTI
VITY4.
1FOBv
alue(
EURO)
………….
..
.40,
000*
22=880,
000

I
nsur
ance…………………………………………….
31,
800

Fr
eight……………………………………………….
88,
200

Tot
alcost
=br
.1,
000,
000

Act
ivi
ty4.
2

Tot
alcostofv
ehi
cle=FOBcost
+insur
ance+f
rei
ght

880,
000+31,
800+88,
200=1,
000,
000

Tot
alcostoft
hev
ehi
cle*
impor
tsdut
y=A

1,
000,
000*
35%=350,
000

(
Tot
alcostoft
heVEHI
CLE+A)exci
set
axr
ate(
ifappl
i
cabl
e)=B

(
1,000,
000+350,
000)
*30%=405,
000

(
TOTALCOSTOFVehi
cle+A+B)
*VAT=C

(
1,000,
000+350,
000*
15%=263,
250

Tot
alcostoft
hev
ehi
cles+A+B+C)
*Sur
tax
=D

(
1000,
000+350,
000+405,
000+263,
250)
*10%=201,
825

Thecostoft
hegoods*wi
thhol
dingt
ax=E

1,
000,
000*
3%=30,
000

TOTALPAYABLEATTHEOFTI
MEI
MPORT=A+B+C+D+E

350,
000+405,
000+265,
000+201,
825+30,
000=1,
250,
075

ACTI
VITY4.
3:mar
ch1,
cashbal
ancei
nthebank……………………….
.br
.13,
550,
500

Deduct
:costofi
mpor
tedgoods….
.br
1,000,
000

Dut
yandt
ax………………….
.br
.1,
250,
075=bi
rr(
2,250,
075)

Cashbal
anceatt
heendoft
hemont
h…………………….
bir
r11,
300,
425

Act
ivi
ty4.
4

 Tot
alcostofi
mpor
teddi
esel
vehi
clei
ncl
udi
ngdut
y,andt
axi
sbi
rr2,
250,
075
 Thenumberofv
ehi
clei
mpor
ted=20

 Tot
alcostofeachi
mport
eddi
esel
vehi
clemor
ewi
thcy
li
ndercapaci
ty1300C.
Cis
2,
250,
075/20=112,
503.
75