Accountandbudgetser

viceLev
elI
II
CODE2
ProjectI:ProcessFinancialTransact ionandExt ractInterim Repor t
s,Admi ni
sterSubsidi
ary
Account sandLedger s,Admi nist erFi nanci alAccount sandpr epareFinancialReports
Listofi ncomest at
ementaccount swi t ht heirrespectiv
ev aluesf orTI
KURABAYConst ruct
ionshare
companyf ortheyearendedseen30, 2005.
Sales 200, 000.00
Salesr etur
nandal l
owance 2,000. 00
Salesdi scount 1,500.00
Costofgoodssol d 110, 600.00
Oper atingexpenses 26, 100.00
Internetexpense 3,000. 00
Oper at i
ngexpensesincludesent ertainmentanduncol l
ect abl eaccountexpensesofbi rr6,
000.00&
2,700. 00respecti
vel
y.Assumet hatt heconst r
uct i
onisexpect edt opay30%pr ofi
ttax.Theboard
directorofthecompanynot icet hati tisdeci dedt odistri
but e60%ofneti ncomeaf tertaxwil
lbe
distri
but edtotheshareholdersasadi vided.
Tasks1. 1demonstrates(prepar e)i ncomest atementf ort axpur poseforthey ear.
Task1. 2demonstrates(calculat e)pr of i
ttaxl i
abili
ty.
Task1. 3demonstrates(calculat e)div idedt axliabil
it
yoft hey ear
Task1. 4demonstrates(calculat e)netdi videndpayoutt ot heshar eholders.
Possi blesolut
ion
Task1. 1

TikurAbayConst ructi
ons. c
Incomest atement
Fort hey earendedsene30, 2005
Sales----
--
--
----
---
--
---
----
---
--
----
---
--
---
----
----
---
---
---
---
----
--
---
---
--
---
--
--
---
---
--200, 000. 00
SalesreturnandAl lowance- ---
---
----
--2,000. 00
Salesdiscount- --
---
----
---
---
---
---
--
----
---1,500. 00- --
---
---
--
---
--
--
-3,500.00=196, 500.
00
Costofgoodssol d- --
---
--
----
---
--
---
----
----
---
---
---
---
----
--
---
---
--
---
--
--
---
---
----
-(110,600. 00)
Grosspr ofi
t- -
---
--
---
----
---
--
----
---
--
---
----
----
---
---
---
---
----
---
--
---
--
---
--
--
---
---
---85,900. 00
Operatingexpensef orTaxpur poseonl y---
----
--26,100.00–8, 700.00=17, 400.00
I
nterestexpense- --
----
---
---
---
---
--
----
-----
---
---
---
----
---
---
--
---
--
---
--
--
----
--
---
--3,000. 00
TotalExpense- -
---
--
----
----
---
---
--
----
----
----
--
---
---
----
----
--
---
--
---
--
--
---
---
---
--
-20, 400. 00
I
ncomebef oreTax- -----
--
----
--
---
---
----
----
---
--
----
---
----
--
---
--
---
--
---
--
---
---
--
--65, 500. 00
Profi
ttax( 30%)- --
--
----
----
---
---
--
----
----
----
---
--
---
----
----
--
---
--
---
--
--
---
---
---
--
--19, 650. 00
Netincomeaf t
erTax- --
---
---
---
--
---
----
----
----
---
---
---
---
---
---
--
---
--
--
---
---
--
----
-45, 850. 00
Task1. 2prof i
ttaxliabi l
it
y=65, 500* 30%=19, 650.00
Task1. 3Gr osspr ofits–Tot alexpenses
NI BT=85, 900. 00–( 26,100. 00+3, 000. 00)
85,900–29, 100.00=56, 800. 00
Pr ofitTax19, 650. 00
Netincomeav ail
ablef ordi vi
dendandr etainear ningsis56, 800–19, 650=37, 150.
00
Sodividendwi l
lbe60%*37, 150. 00=22, 290. 00
Divi
dendt axl i
abili
tyi s22, 290.00*10%=2, 229. 00

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Page
 Task1.4Netdi v
idendpayt oshar eholderswillbeBR20, 061.00=( 22,290- 2,
229)
Proj
ect2:Processpay mentDocument ati
on,processpay r
ollandcalculateTaxes, feesandchar ges
AddisText
il
ef actoryisregisteredcompanyi nEthiopiaengagedi nExpor tingofTextileproduct
sto
AsiaandEurope.Thecompanyhasoper at
ionalandAdmi nistrati
vestaffs.Forthemont hof
September2013t heaccount antofAddi sText i
lefact
orypr eparespayrollandpr ocesst hepayments
thr
oughbankaccount sforeachempl oyee.TheAccount anthast hefoll
owi nginformationtoprepare
Septemberpayroll.
Employeename Posi
tion Basicsalar
y All
owance Ov erti
me

Bedel
uSamuel Super
visor 4,
560.
00 500.
00 1,
200.
00

Aber
aBel
elegn Techni
cian 3,
570.
00 500.
00 1,
500.
00

Al
azar
Hai
lu Techni
cian 2,
750.
00 200.
00 700.
00

Bel
aySeman Admi
nist
rat
or 5,
300.
00 700.
00 -

DebasuGet
ahun Account
ant 1,
540.
00 350.
00 750.
00

Addi
ti
onalInf
ormat i
on
 Allowanceofeachempl oyeesisnott axable
 Pensioncontributionis11%f rom Empl oyerand7%f r
om employee
 Allemployeesar eper manent
 Bankser v
icechar gef oreachempl oyeei s20Birrpaidbytheemployer
Task2.1Pr eparePay rolldocumentf orthemont hofSeptember2013.
Task2.2Calculatet heamountofi ncomet ax.Pensionandchargespaidt
otheconcerned
bodies
Task2.3Recor dt henecessar yPayrollentri
esforthemont hofSeptember2013f
orthe
pay ment

Possi
blesol
uti
on
Task2.1
Nameof Basic Non Over
tim Tot
al Taxable I
ncome Pensi
on Total Netpay
Empl
oye Salar
y Taxabl
e e ear
ning earni
ng t
ax deducti
e All
owan ear
ning on
ce

Bedel
u 4,
560.
00 500.
00 1,
200.
0 6,
260.
00 5,
760.
00 875.
00 319.
20 1,
194.
20 5,
065.
00
Samuel 0

AberaBe 3,
570.
00 500.
00 1,
500.
0 5,
570.
00 5,
070.
00 711.
50 249.
90 961.
40 4,
608.
60
l
elegn 0

Al
azar
H 2,
750.
00 200.
00 700.
00 3,
650.
00 3,
450.
00 387.
50 192.
50 580.
00 3,
070.
00
ai
lu

Bel
ay 5,
300.
00 700.
00 - 6,
000.
00 5,
300.
00 760.
00 371.
00 1,
131.
00 4,
869.
00
Seman

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Page
Debasu 1,
540.
00 350.
00 750.
00 2,
640.
00 2,
290.
00 201.
00 107.
80 308.
80 2,
331.
20
Getahun

17,
720.
0 2,
250.
0 4,
150.
0 24,
120.
0 21,
870.
0 2,
935.
00 1,
240.
40 4,
175.
40 19,
944.
6
0 0 0 0 0 0

Task2.2
I
ncomet ax=2,935.
00
Pension=1240.40+(17,
720)*
11%=1,
240.
40+1,
949.
20=3,
189.
60
Serv
icechar
ge=20* 5=100.00

Task2.3
Sal
aryexpense 24, 120. 00
Incomet axpay able 2,935. 00
Pensi onpay able 1,240.40
Cash 19,944.60
Pensionexpense- --
----
--
----
--
----
1,949.20
Pensionpay able--
--
----
--
----
--
----
--
---
----
--
--
----
----
--1,
949. 20
I
ncomet axpay able 2,
935. 00
Cash 2,935. 00
PensionPay able 3,
189. 60
Cash 3,189. 60
Bankser vicechar ge( 20* 5) 100. 00
Cash 100. 00
Pr oject3Moni t
orandCont rolAccount sRecei vableandBal ancecashHol di
ngs
Thefoll
owi ngdat aper taintoNunnCompany
1.Bal anceperBankst atementdat edMar ch31, 20X8, isBr8,900.00
2.Bal anceoft hecashaccountont hecompany ’
sbooksasofMar ch31, 20X8,isBr8,918.00
3.TheBr2, 600.00deposi tofMar ch31wasnotshownont heBankst atement
4.Oft hechecksr ecor dedcashdi sbur sementi nMar chsomecheckst otal
ingBr2,100.00hav e
noty etclearedt hebank
5.Ser viceandcol lecti
onchar gesf ort hemont hwer eBr20. 00
6.Thebanker roneousl ychar gedt heNunncompanyaccountf ort
heBr400. 00checkof
anot hercompany
7.Thebankcr edi t
edt hecompany ’
saccountwi tht heBr2, 000. 00proceedsofnon–i nterest
bear i
ngnot et hatitcol l
ectedf ort hecompany
8.Acust omer’sBr150. 00checkmar kedNSFwasr eturnedwi ththebankst atement(Wr itt
en
toNunncompany )
9.Asdi rectedt hebankpai dandchar gedt othecompany ’saccountaBr1, 015.00non–
inter estbear i
ngnonNunncompany , t
hecompanyhasnotr ecordedthispay ment
10.Acashr eceiptsofBr263. 00wasr ecordedi nt hecashr eceiptsjournalasBr236. 00
11.Thebankcr edi t
edt hecompanyf orBr40. 00ofi nterestearnedont hecompany ’schecking
account
Requi red
Task3. 1Prepar edbankr econci li
ationasofMar ch31, 2008
Task3. 2Prepar ethenecessar yj our nalentries

3|
Page
Possi
blesol
uti
on
Task3.1
NunnCompany
Bankr econciliation
March31, 2008
Balanceperbank- --
--
--
---
--
---
--
--
---
--
--
---
---
--
---
--
---
--
---
--
--
---
------
---
--
--
---
--
----
--
--
----
--8,900
Adddeposi ti ntransit--
---
--
--
---
--
--
---
--
---
--
---
--
---
--
---
--
---
--
--
-- 2, 600. 00
Err
or smadebyBank- --
---
--
--
---
--
--
---
--
---
--
---
--
---
--
---
--
---
--
--
--- 400. 00- -
--
----
--
---3,000.00
Subtotal---
----
---
--
---
--
--
---
--
---
--
--
---
--
--
---
---
--
--
---
---
--
--
---
--
---
--
------
---
--
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--
----
--
--
---11,900.00
Deductout st andingchecks- --
--
---
--
--
---
---
--
--
---
---
--
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--
--
----
-----
---
--
--
---
---
---
--
---
---
-(2,100.00)
Adjustedbal ance- --
--
--
---
---
--
--
---
--
--
---
---
--
--
---
--
---
--
---
--
---
--
------
---
--
---
--
----
--
--
---
---
-9,800.00
Balanceperdeposi t
or---
---
--
--
---
--
--
---
---
--
--
---
---
--
--
---
--
---
--
------
---
--
---
--
----
--
--
----
--
-8,918. 00
AddCol lectionbyBank- --
---
--
--
---
--
--
---
---
--
---
--
---
--
---
--
--
---
----2,000.00
I
nterestear ned- --
--
---
--
---
--
--
---
--
--
---
--
--
---
---
--
---
--
---
--
---
--
--
----40. 00
Err
or smadebydeposi t
or---
---
--
--
---
--
---
--
---
--
---
--
---
--
---
--
--
------27.00- -
---
--
--
----
---
-2,067.00
Subtotal---
----
---
--
---
--
--
---
--
---
--
--
---
--
--
---
---
--
--
---
---
--
--
---
--
---
--
------
---
--
---
--
----
--
--
----
-10,985.00
DeductSer vicechar ge- -
--
---
--
--
---
--
--
---
---
--
---
--
---
--
---
--
--
---
-----20.00
Notepay mentbyBank -
--
--
---
--
---
--
---
--
---
--
---
--
---
--
--
-------
--
---
-1,015.00
NSF- --
--
---
--
-----
--
--
---
--
---
---
--
--
---
--
--
---
--
--
---
---
--
--
---
--
---
---
--
--
---150. 00- -
----
--
--
---
---
-1,185.00
Adjustedbal ance- --
--
--
---
---
--
--
---
--
--
---
---
--
--
---
--
---
--
---
--
---
--
------
---
--
---
--
----
--
--
---
---
---9,800.00
Task3. 2
1.Tor ecor der r
or
Cashi nbank- --
--
---
--
--
---
--
---
--
--
-27.00
AccountRecei vable--
---
--
--
---
--27.00

2. Tor ecor dedcashcol l

ection
Cashi nbank- ---
---
--
--
---
--
--
---
---
---2,
040. 00
Not eRecei vable---
--
---
----
--
---
---
---2,000. 00
I
nter estincome- -
--
--
---
----
--
---
---
---40. 00
3.Tor ecor dbankchar geandnon- i
nter estbear ingchar ge
Bankser vicechar ge---
--
---
--
---
----
--
--
----
--
-----20
Notepay abl e- -
---
--
---
--
--
---
--
--
---
----
--
---
---
--1,015. 00
Cashi nBank- --
---
--
--
---
----
--
---
---
-----
---
-----
--1,035.00
4.Tor ecor dNSF
Accountr ecei vable---
---
--
--
--
---
----
--
---
---
--150. 00
Cashi nBank- --
---
--
--
---
----
--
---
---
-----
---
----150. 00
Project4Handl eForeignCur rencyTr ansact ions
Jit
tuHor ticulturalPLCi sengagedi nhor ti
cul tureact ivi
ti
esi nordertopr oduci
ngdifferentfrui
tsand
vegetables.Thecompanyi sexpor tingi tspr oductt oEur opeanandMi ddleEastcount ri
es.Atthe
samet i
mecompanyi simpor tingdiffer entpacki ngmat eri
alsinordert opackitsproduct sand
fert
ili
zersf r
om abr oad.
OnMay1, 2013t hecompanycashbal ancei ndicatedi nbankaccountwasBr1, 500,000.00onMay
10,2013f undwast r
ansferredt othecompanyaccount sUSD50, 000.00andEur o100, 000.
00f r
om
thei
rcust omer s.DuringMayt hecompanyal soi mpor teddi f
fer
entitemscost i
ngFOBUSD35, 000.
00
Br10,000. 00, 50,000.00and120, 000.00waspai df orinsurance,fr
ightandcust omsr especti
velyto
theimpor tedi tems.

4|
Page
Assumet hatt hef oll
owi ngexchanger at eisappl icabl edur i
ngt hemonthofMay2013.( Const ant)
USD EURO
Buying 18. 80 25.50
Sell
i
ng 19. 20 26.00
Assumet hatwhent her eisfundt ransferi nt ot hecompanyaccountt hebuyingrat
eisappliedand
fori
mpor tingpur posesel l
ingr atei sappl ied
Task4.1Demonst r
at e(determi ne)t het ot alcostoft hei mpor t
edmat eri
alsassumethatthereis3%
ofBankser vicechar geonFOBv alue
Task4.2Demonst r
at e(calculate)t het otal fundt ransf erredtot hecompanyaccountinit
emsofBi rr
duri
ngthemont h
Task4.3whatwi llbet hebal anceofcashI nbankaccountassumet hatther
ewasnoanywi thdraw
duri
ngthemont hexceptf ort heimpor tpur posei nt ermsofBi r
r
Possibl
esol ution
Task4.1FOBv alue( USD)- --
----
---
--35,000* 19.20=672, 000. 00
Insur ance- -
---
---
---
--
---
----
---
---
---
--
------
----
--
--10, 000. 00
Fright- ---
----
--
----
--
--
----
----
--
---
----
--
-----
-----
--
--50,000. 00
Cust om - ----
--
----
--
---
---
----
--
----
---
--
------
----
--
---120, 000.00
Bankser vicechar ge( 672, 000.00* 3%/ 100)- ---20,160.00
Tot alI mpor tedcost- ----
---
----
---
-----
----
---
--
---
--872, 160.00
Task4.2USD50, 000* 18.80+EURO100, 000. 00* 25.50
940, 000. 00+2, 550,000. 00=3, 490, 000. 00
Task4.3( 1,550, 000+3, 490,000. 00)–872, 160.00
4,990, 000–872, 160. 00=4, 117, 840. 00

5|
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