Calculate Personal Budget and Savings Plan

ATEGORY1
TASKS 1.1 PROCESS CUSTOMER TRANSACTION
Assume that Mr. Tola needs to start a new merchandising business in the next year (January 1, 2016)
with a capital of birr 110,250. If he deposits his money at bank, the bank will allow him an interest rate of
5% per year.
A. Calculate the amount that Mr. Tola should depoit today (January 1, 2015)
B. Calculate the amount of interest income at the end of December 31, 2015
 GIVEN SOLUTION
Amount = 110,250 A = P (1+RT) I = A-P or I=PRT
R = 5% P = A/ (1+RT) I = 110,250-105,000.
T = 1year P = 110,250/ (1+5%*1 ) I = 5,250
P = 105,000
 REQUIRED
A. Principal =___?
B. Interest =____?
TASKS 1.2 WORK EFFECTIVELY IN THE FINANCIAL SERVICES SECTOR

Chala is a new employee joining Ethiopian Electric utility as accounting clerk and he understood that
there are some information and activities he needs to know about the organization to be effective worker.
 What is the possible information & activities should Chala need to know about the
organizations to be effective worker?
 Time management
 Organizational values & objectives
 Preparing action plan for assigned job
 Workplace procedures and instructions
 Guidelines, procedures, legislations, & codes of practice
TASKS 1.3 PROCESS CUSTOMER ACCOUNTS

Ethio-telecom was using commercial bank of Ethiopia Nazreth branch for deposits and the company
needs to close the existing deposit account and open a new account at Adama branch.
A. What is the procedure required to close the existing account?

B. What are the procedures required to open a new account?
A. What are the procedures required to close the existing account?

 Reasons for transfer or closure of an account
 Details of possible complaints relating to the account
ACCOUNTING DEPARTMENT
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 Account details to enable to transfer of remaining funds
B. What are the procedures required to open a new account

 TIN
 Contact details
 Nature of the institution [sole, share, corp.]
 Dispute resolution officer
 Nature & purpose of a business [service, merchant, manufacturer]
 Principal place of the institution
 Certificate & memorandum of association
TASKS 1.4 WORK EFFECTIVELY WITH OTHERS

Ato Yohanes is a permanent employee of Metehara sugar factory. He was recruited as junior accounting
clerk of that organization in cost department. Yohanes recognized that the newly assigned job demands
team working and he is finding the way how he can optimize his capacity by working with other staffs.
1. What are the activities Ato Yohanes needs to follow for the effectiveness of the team members?
 Respect differences
 Effective communication
 Share information to colleagues
 Provide support to team members
 Understand duties & responsibilities
 Seek assistance from workgroup members
TASKS 1.5 UNDERSTANDING OF DEBT & CUSTOMER CREDIT

In Ethiopia there are many financial institutions which are provides in credit facility for customers, like
co-operative banks. Assume that you are the employee of this institution.
 What is the importance of providing customer credit?

 To minimize the need to carry cash
 To purchase on account basis & pay later
 Convenient form of payment when traveling
 Allows for installment payment on expensive items
PROJECT 2 PERFORM TAX ACCOUNTING
Time allowed 30 minutes
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Kiya PLC is a famous merchandizing business which is engaged in purchasing and
selling of various products located at Bishoftu town. As per the Ethiopian tax
regulation, The PLC is a VAT registered and during the month of December 2015
the following information is related to the business activities of Kiya PLC. Assume
that profit tax is 30% of and the PLC will pay taxes to Inland Revenue on regular
basis.
1. Purchase of products for the month of December including VAT birr

115,000
2. Sales made during the month excluding VAT 210,000
3. Employee payroll tax for the month of December birr 15,000
4. Business income before tax birr 90,000
5. Excise tax birr 6,000
TASKS 2.1Determine the indirect tax liability of the business for the given month
 GIVEN
SOLUTIONS
Purchase = 115,000 VAT Including 1. Output =

Sales*Rate
Sales = 210,000 VAT Excluding Output =
210,000*15%
EIT = 15,000 for December Output =
31,500
Business Profit Before Tax = 90,000
Tax Rate = 30% 2. Input =
Purchase*Rate
Excise tax = 6,000 Input =
115,000*15/115
Input =
15,000
3. VAT Payable
= Output-Input
VAT Payable =
31,500-15,000
So, Indirect tax = Excise + VAT VAT Payable =
16,500
Indirect tax= 6,000+16,500
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Indirect tax= 22,500 4. Business Profit =
90,000 [given]
5. Business Profit Tax = Business

Profit*given rate
Business Profit Tax =
90,000*30%
Business Profit Tax = 27,000
TASKS 2.2 Determine the direct tax liability of the company

 Direct Tax = BPT+EIT
 Direct Tax = 27,000+15,000
 Direct Tax = 42,000
TASKS 2.3 Understanding how to present tax to inland tax authority

A. Determine the total amount of Kiya PLC will present to tax authority
 Total Tax Liabilities = direct tax + indirect tax
 Total Tax Liabilities = 42,000+22,500
 Total Tax Liabilities = 64,500
B. When does the indirect tax will be presented to the tax authority
th
 Up to 10 Month of next year 2016
Project 3 DEVELOP PERSONAL BUDGET & SAVING PLAN & BUSINESS

PRACTICE
Time allowed 1hr
Description Actual Income & Expenditures
(December 31, 2015)
Income:
Salary Income (net) 6,000
Expenditures:
Clothing 500
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Food 2,000
Entertainment 100
Utility 500
Personal Expense 50
School Fee 700
Cost Sharing 100
Transportation 100
Other 150
TASKS 3.1 DEVELOP & USE A PERSONAL BUDGET
The following data is given for actual income and expenditure of Bilisie for the
month of December 2015. The difference between total income and expenditures is
personal saving Using her personal saving Bilisie has a plan to establish a business
in the future.
 Assume that the salary: Income & expenditures will increase by 10%
prepare budget plan & budget variance for December 2015
Miss Bilisie
Personal budget performance report
For the Month ended December 31, 2015
Item Actual budget Budget amount

Variance
Salary 6,000 6,600

(F) 600
Cloth 500 550

(U) 50
Food 2,000 2,200

(U) 200
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Entertainment 100 110
(U) 10
Utility 500 550

(U) 50
Personal expense 50 55
(U) 5
School fee 700 770

(U) 70
Cost sharing 100 110

(U) 10
Transport 100 110

(U) 10
Other 150 165

(U) 15
Total Expenses 4,200 4,620

420
SAVING 1,800 1,980

(F) 180
%SAVING 30% 30%

30%
TASKS 3.2 DEVELOPING PERSONAL BUDGET
 Assume that expenditures will increase by 10% & no change in salary

income prepare budget plan for January 2016.
Miss Bilise
Personal budget Performance Report
For the Month ended January31, 2016
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Item Actual budget Budget amount
Variance
Salary 6,000 6,000

---
Cloth 500 550

(u) 50
Food 2,000 2,200

(u) 200
Entertainment 100 110

(u) 10
Utility 500 550

(u) 50
Personal expense 50 55
(u) 5
School fee 700 770

(u) 70
Cost sharing 100 110

(u) 10
Transport 100 110

(u) 10
Other 150 165

(u) 15
Total Expenses 4,200 4,620

420
SAVING 1,800 1,380

(U) 420
%SAVING 30% 23%

[?]
TASKS 3.3 DEVELOPING OF SAVING PLAN
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Assume that expenditure of December 2015 remains unchanged in January 2016
& Bilisie need to find other source of income in addition to her salary to have Birr
2,000 saving amount in January 2016.
 Calculate the additional amount to her salary that Bilisie need to finance to
reach a saving of 2,000
GIVEN SOLUTION
Saving of 2015 = 1,800 Additional amount = Plan-Saving
Plan = 2,000 Additional amount = 2,000-1,800
REQUIRED Additional amount = 200
Additional amount = ___?
TASKS 3.4 UNDERSTANDING OF SAVING FOR THE SOCIETY

 What are the advantages of saving for society?
 To improve Our life
 To develop Our capital
 For emergency problems
 For family support & protection in case of job lose
CATEGOTY2
Total Time Allotted for all projects:-1:30hrs
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Project 1DEVELOP UNDERSTANDING OF TAXATION (0.50)
Besualem PLC is an importer of reinforcement bars from Belgium. The company

has been engaged in buying and selling activities at the end of November 2014. The
company paid net amount of birr 3,000 to ERCA for VAT. During the month of
October 2014 it earns birr 1,541,000 VAT inclusive from sales of reinforcement
bars. In addition Besualem PLC paid an employment income tax of birr 6,000 per
month collected from employees and paid administrative & general expense of birr
15,000.
TASKS 1.1 Determine the amount of direct tax liability of the company for the
month of October 2014.
Given
sales..................1,541,000 inclusive vat
vat payable.........3,000
Expense ..........15,000
EIT.............6,000
solution
sales =1,541,000/1.15 =1,340,000
Revenue .................1,340,000
cost of good sold......(0)
gross profit ..............1,340,000
Expense ..............15,000
IBT .....................1,325,000
BPT =1,325,000*30/100 =397,500
Task 1.1 Direct tax =BPT+EIT
=397,500+600 =403,500
Indirect tax =output - input
sales= 1,541,000*15/115 =201,000
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Indirect tax =201,000 - 3000 =198,00
Project 2WORK EFFECTIVELY IN THE FINANCIAL SERVICES SECTOR

(0.20)
DNB Bank a newly established bank as per the proclamation of Ethiopia and You
are an employee of this bank and assigned to perform banking activities to prepare
daily report on saving/withdrawal amount of more than 200,000 ETB to the national
bank of Ethiopia and financial intelligence office.
TASKA 2.1 Identify at list five organizational

policy/guidelines/legislation/procedures/codes of practice.
 Financial codes
 Industry codes of practices
 Anti-discrimination legislation
 Financial transactions reports act
 Relevant environmental legislation
 Financial services reform act (FSRA)
 Electronic funds transfer (EFT) codes of conduct
 Anti-money laundry and counteract terrorism financial acts
TASKS 2.2As a team member in the bank, Identify your roles’ in supporting your
team members and your work place interaction mechanisms.
 Respect differences
 Effective communication
 Share information to colleagues
 Provide support to team members
 Understand duties & responsibilities
 Seek assistance from workgroup members
TASKS 2.3Identify the business technology applied to send your report to the
National bank of Ethiopia and financial intelligence office
 Fax
 E-mail
 Web site
Project 3 Develop and use a personal budget & saving plan (0.45)
Ato Fantahun is a permanent employee of Ethio-constraction company earning

monthly net salary of birr 9,500. He has monthly personal expenditures as per the
following details and the remaining amount will be deposited to his personal saving
account.
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Cloth--------------------------------------------15%
Food & Beverage-------------------------------20%
Medical------------------------------------------5%
Rent---------------------------------------------20%
Transport---------------------------------------2%
Education--------------------------------------10%
He plans to open barber shop with a capital of 80,520 after one year. As per his
business plan his capital is covered from his personal saving account & the
remaining from Addis saving & credit association at 8.5% annual interest rate for
three years & the principal amount will be paid semi-annually at equal
installment.
TASKS 3.1 Prepare monthly & annual budget for the year consider that there is
no change in earning & expenditures
Ato Fantahun
Personal budget report
For the month of December 31, 2010
Income:
Salary…………………………………………………………………………………
……….9,500
Expenditures:
Cloth……………..15% ………………………..1,425
Food………………20% ………………………..1,900
Medical…………....5% …………………………..475
Rent………………20% ……………………….1,900
Transport………….2% …………………………190
Education………..10% ………………………..950
Total Expenses
……………………………………………………………………………… 6,840
Saving
2,660
%Saving
28%
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Ato Fantahun
Personal Budget report
For the year of 2010
INCOME:
Salary 114,000
Expenses:
Cloth 17,100
Food 22,800
Medical 5,700
Rent 22,800
Transport 2,280
Education 11,400
Total Expenses 82,080
Saving 31,920
%Saving 28%
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ASKS 3.2 Identify the source of information to develop business plan
 Hobbies
 Interests
 Franchises
 Personal skill & experience
TASKS 3.3 Determine

A. The amount of loan from Addis saving & credit association I1
=P1RT
 Loan = Amount-Annual Saving I1
=48,600*8.5%*0.5
 Loan = 80,520-31,920 I1
= 2,065.50
 Loan =48,600
B. The amount of principal & interest repayment for the first year P2=
st
Loan – 1 payment
 Installment = Loan/ (round*time) P2
= 48,600 – 8,100
 Installment = 48,600/ (2*3) P2
=40,500
 Installment = 8,100
 SO, Principal for a year = Installment*2 I2 =

P2RT
 Principal for a year = 8,100*2 I2 =
40,500*8.5%*0.5
 Principal for a year = 16,200 I2
=1,721.25
 Interest for a year = I1 + I2

 Interest for a year = 2,065.50+1,721.25
 Interest for a year=3,786.75
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C. Amount of outstanding principal balance at the end of the second year
 Outstanding balance = Installment*2
 Outstanding balance = 8,100*2
 Outstanding balance =16,200
Project 4 Process customer account & transaction (0.35)
You are an accountant officer of Alem PLC among the tasks and responsibilities
listed on your job descriptions to handle issues related to financial sectors, to create
business relationship with concerned government and private companies and to
process customer account and transactions of your company.
TASKS 4.1 Demonstrate the possible document required from your company to
open current Bank account in CBE
 TIN
 Contact details
 Nature of the institution
 Dispute resolution officer
 Nature & purpose of a business
 Principal place of the institution
 Certificate & memorandum of a company
TASKS 4.2 Demonstrate the advantages of saving deposit account to your

company if you maintain saving account
 Interest
 For emergency
 For investments
 For security purpose
 Meets financial requirement
TASKS 4.3 Demonstrate the possible challenges that affect your job with regards
to banks activities.
 New procedures
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 Changes of procedures
 Environmental factors
CATEGORY3
PROJECT 1
Ato Mohammed receives 2,000 birr from the supermarket he is working in as a

salary. He has the following expenditures. He his expenditures are:-
700 birr for food, 400 birr for clothing, 50 birr for car expense and 150 birr for
recreation.
TASKS 1.1 Based on the above information calculate the personal saving.
Item Actual income & Estimated income &

Expenditue Expenditue
Income 90% 2,100
Clothing 100% 700
Food 85% 400
Gas 50% 200
Recreation 70% 120
TASKS 1.2 calculate the actual income & expenditure
TASKS 1.3 calculate the actual saving & estimated saving
TASKS 1.4 calculate percentage of actual saving against estimated saving
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Task 1.1
Salary------------------------------------------------------------------------------
2,000
Expenditures:-
Food---------------------------------------- 740
Cloth----------------------------------------400
Car expense---------------------------------50
Recreation----------------------------------150
Total expenditures----------------------------------------------------------------
1,340
Saving---------------------------------------------------------------------------------
660
% Saving -----------------------------------------------------------------------------
33%
Task 1.2
 Total actual income => => 2,100*90% = 1,890
 Expenditure:-
 Cloth =>=>=> 700*100% = 700
 Food =>=>=> 400*85% = 340
 Gas =>=>=>=>200*50% = 100
 Recreation =>120*70% = 84.00
Total expenditure =>=> = 1,224
Task 1.3
Actual saving = actual income – actual expenditure

Actual saving = 1,890 – 1,224
Actual saving = 666
Estimated saving = Estimated income – Estimated expenditure

Estimated saving = 2,100 – 1,420
Estimated saving = 680
Task 1.4
G
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% of AS against ES = (Actual Saving/Estimated Saving) * 100%
% of AS against ES = (666/680)*100%
% of AS against ES = 97.94%
Project 2
XYZ is a merchandizing business enterprise engaged in buying & selling of

products. The enterprise purchased & resold items of birr 86,250 and 115,000
respectively. The enterprise has two permanent employees.
Name of employee Basic Salary Over Time
Ato Tesfayie Abebe 1,500 300
Ato Aman Hakim 800 400
TASKS 2.1 Calculate direct tax of the month
GIVEN2.1 SOLUTION2.1
Purchase = 86,250
Sales = 115,000
Tesfaye’s;- Gross earning = Basic salary

+ Over time
Gross earning =
1,500+300
Gross earning =
1,800
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Tesfaye’s:- EIT = GE*Rate –
Deduction
Tesfaye’s:- EIT = 1,800*15% -
142.50
Tesfaye’s:- EIT = 1072.5
Aman’s:- Gross earning = Basic

Salary +Over Time
Gross earning =
800+400
Gross earning =
1,200
SO
DT = BPT + EIT Aman’s:- EIT =

GE*Rate – Deduction
DT = 21250+ 187.50 Aman’s:- EIT =
1,200*10% - 60.00
DT = 21,202.50 Aman’s:- EIT =
60.00
So, Employment Income Tax =

1072.50 + 60.00
Employment Income Tax [EIT]
= 1132.50
TASKS 2.2 Calculate indirect tax of the company

GIVEN2.2 SOLUTIONS2.2
Purchase = 86,250
1. Output = sales*Rate
Sales = 115,000 Output = 115,000*15/115
EIT= 187.50 Output = 15,000
2. Input = Purchase*Rate
Input = 86,250*15/115
Input = 11,250
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3. Indirect Tax Payable = Output – Input
Indirect Tax Payable = 15,000 –
11,250
Indirect Tax Payable = 3,750
4. Business Profit = Sales - [all IT + all

EXPENSES]
Business Profit = 115,000 – [3,750
+ 3,000]
Business Profit = 108,250
5. Business Profit Tax = Business

Profit*Rate-deduction
Business Profit Tax = 108,250*30%-
11,460
Business Profit Tax = 21,015
TASKS 2.3 Explain direct & indirect tax

 Direct taxes are the obligations of payment that cannot be shifted
to a third party.
 Direct tax is a tax that the impact & incidence fall on the same
person.
 Indirect tax is not born by the same person on whom it is levied & can be
passed onto others.
 Indirect taxes’ impact & incidence fall on different persons.
PROJECT 3
Hyrax PLC wants to establish a business enterprise with an initial capital of birr
100,000. The investor has birr 40,000 deposit and borrow the remaining amount
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from Dashen bank with an interest rate of 10% that will be repaid after a year. You
are working as a clerk in Dashen bank.
TASKS 3.1Provide information to Hyrax PLC to open a new account

TASKS 3.2Calculate the cash and interest to be collected from Hyrax PLC after a
year
TASKS 3.3Explain financial intermediaries
Task 3.1
 TIN
 Contact details
TASK 3.2
 GIVEN3 SOLUTIONS
Capital = 100,000 Amount = P [1+RT] Interest

= P*R*T or I=A-P
Saving = 40,000 Amount = 60,000[1+10%*1] Interest
= 66,000-60,000
Rate = 10% Amount = 66,000
Interest = 6,000
Time = 1 year
 REQUIRED
I. Amount = ---?
II. Interest =----?
Task 3.3
 Banks  Corporations
 Investors  Non-banking financial
 Individuals institutions
 Speculators  Local & international
governments
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CATEGORY4
 GIVEN
Salary = 9,500
Cloth 15%
Food & Beverage 20%
Medical 5%
Rent 20%
Transport 2%
Education 10%
 Ato Fantahun plan to open barber shop with a capital of 80,520 after one
year. As per his business plan his capital is covered from his personal
saving account & the remaining from Addis saving & credit association at
8.5% annual interest rate for three years & the principal amount will be paid
semi-annually at equal installment.
TASKS 1.1 Prepare monthly & annual budget for the year consider that there is no
change in earning & expenditures
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Ato Fantahun
Personal budget report
For the month of …
INCOME:
Salary 9,500
EXPENDITURES:
Cloth 1,425
Food 1,900
Medical 475
Rent 1,900
Transport 190
Education 950
Saving 2,660
%Saving 28%
Ato Fantahun
Personal Budget report
For the year of 2010
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INCOME:-
Salary 114,000
EXPENSES:-
Cloth 17,100
Food 22,800
Medical 5,700
Rent 22,500
Transport 2,280
Education 11,400
Saving 31,920
%Saving 28%
TASKS 1.2 Identify the source of information to develop business plan

 Hobbies
 Interests
 Franchises
 Personal skill & experience
TASKS 1.3 Determine

A. Amount of loan from Addis saving & credit association I1
=P1RT
 Loan = Amount-Annual Saving I1
=48,600*8.5%*0.5
 Loan = 80,520-31,920 I1 =
2,065.50
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 Loan =48,600
B. Amount of principal & interest repayment for the first year I2 =

P2RT
 Installment = Loan/ (round*time) I2 =
40,500*8.5%*0.5
 Installment = 48,600/ (2*3) I2
=1,721.25
 Installment = 8,100
 Principal = Installment*2
 Principal = 8,100*2
 Principal = 16,200
 Interest = I1+I2
 Interest = 2,065.50+1,721.25
 Interest = 3,786.75
2. Amount of outstanding principal balance at the end of the second year

 Outstanding balance = Installment*2
 Outstanding balance = 8,100*2
 Outstanding balance = 16,200
TASKS 1.4 Relevant documentations for taxation

 Purchase invoice
 Sales invoice
 VAT invoice
 Withholding invoice
 Payroll sheets
 Tax return statements
 Goods transits vouchers
Project 2 DEVELOP UNDERSTANDING OF TAXATION
 GIVEN SOLUTION
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Purchase = 300,000Before VAT 1.OUTPUT
=Purchase*Rate
IT infrastructure OUTPUT =
1,081,000*15/115
Earns = 1,081,000 Including VAT OUTPUT =141,000
 EIT = 8,500 2. INPUT =Sales*Rate

INPUT =
300,000*15%’[t
INPUT =45,000
 REQUIRED 3. VAT Payable

=OUTPUT – INPUT
VAT Payable =
141,000-45,000
 A. Direct tax -----8,500 VAT Payable =96,000
B. Indirect tax-----96,000 4. BP = Sales – (all ID + all

expense)
But
We, do not calculate a Business
Profit
B/C it is a bank; not a
merchandising business
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Project 3
TASKS 3.1 Information required for clothing an account

 Reasons for transfer or closure of account
 Details of possible complaints relating to the account
 Account details to enable transfer of remaining funds
TASKS 3.2 Information required for opening an account

 Primary account holder's፦ Name, Address, Contact details etc
 Type of account
 Amount of initial deposit
 Required links to other accounts held
 Purpose for which the account will be used
TASKS 3.3 Financial markets in Ethiopia includes

 Bond markets
 Money markets
 Derivatives markets
 Option & future markets
 Foreign exchange markets
TASKS 3.4 Participants in the financial market

 Banks
 Investors
 Individuals
 Speculators
 Corporations
 Governments
TASKS 3.5The effect of the NBE’s monetary policy includes

 To change an interest rates
 Flow on changes to employment, prices, & production level
 Increase or decrease the supply of money in the Ethiopian
markets
 Acting to avoid or minimize a systematic collapse of financial
institutions
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TASKS 3.6 Instruments traded on the short term money market includes
 Treasury bills
 Bill of exchange
 Commercial bills
 Government bills
 Promissory notes
TASKS 3.7 Guidelines, procedures, legislations, & codes of practices

 Financial codes
 Industry codes of practices
 Anti-discrimination legislation
 Financial transactions reports act
 Relevant environmental legislation
 Financial services reform act (FSRA)
 Electronic funds transfer (EFT) codes of conduct
 Anti-money laundry and counteract terrorism financial acts
TASKS 3.8The role of the NBE’s as Ethiopian’s central bank includes

 To issue paper money & coins
 To act as an agent of the government
 To fix & control the foreign exchange rates
 To manage & administer the country’s international reserves
 To supervise loans of commercial banks & regulate interests
 To regulate the supplies, availability & costs of money & credit
 To license & supervise banks & hold commercial banks reserves &
lend money to them
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CATEGORY5
Total time for all projects: 1.30 Hours
On this project you are expected to perform the following tasks:
Based on the information provided:
The project covers the following units of competencies
EIS BAW2 01 0812 Work Effectively in the Financial Service Sector

EIS BAW2 04 0812 Process Customer Accounts
EIS BAW2 05 0812 Process Customer Transactions
EIS BAW2 06 0812 Develop Understanding of the Ethiopian Financial System &
Markets
EIS BAW2 10 0812 Develop Understanding of Debt & Consumer Credit
Information:- Assume ATO BEKELE TOLOSA is a contract consultant in a

newly establishing private business enterprise earning annual net pay of Br
223,200.00 at the beginning of each year for four years. ATO BEKELE’s annual
living expenditure is 68% of his net pay. ATO BEKELE has a plan to open his own
business after four years. When his contract is terminated & he started to save his
excess net pay at DASHEN bank ADAMA branch at annual simple interest rate of
5.5% by opening saving account. To open the business ATO BEKELE requires Br
500,000.00. And ATO BEKELE can borrow any deficit amount from the bank at
annual simple interest rate of 14%.
Assume you are working in this bank & you are responsible to handle customer
requests
Based on the above information the candidate is expected to perform the following
tasks:
Task 1.1 (01 04) Process Customer Accounts & Work Effectively in the Financial
Service Sector
What documents are required from ATO BEKELE to open his saving account?
 Primary account holder's፦ Name, Address, Contact details etc

 Type of account
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 Amount of initial deposit
 Required links to other accounts held
Task 1.2 (05) Process Customer Transactions
At the end of four years, how much would be (including the accumulated interest &
total amount of deposit made by ATO BEKELE?
GIVEN REQUIRED SOLUTION
Saving = Income*Saving Rate Amount A1 = p (1+rt)

Saving = 223,200*32% A 1 = 71,424
(1+5.5%*4)
Saving = 71,424 A1= 87,137.28
A2 = P(1+rt)
A2 =
71,424(1+5.5%*3)
A2 = 83,208.96
Total Saving = A1 + A2 + A3 + A4
Total Saving = 87137.28 + 83208.96 +79280.64+75352.32 A3 = P(1+rt)
Total Saving = 324,979.20 A3 =
71,424(1+5.5%*2)
A3 = 79,280.64
A4 = P(1+rt)
A4 =
71,424(1+5.5%*1)
A4 =75,352.32
Task 1.3 (02, 10) Develop Understanding of Debt & Consumer Credit and Markets
& Work Effectively with Others
A. To start the business as per his plan how much loan ATO BEKELE
require?
GIVIN REQUIRED SOLUTION
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Saving = 324,979.20 Loan Loan = Capital – Total
Saving
R = 14% Loan = 500,000 –
324,979.20
Loan = 175,020.80
B. Assume the loan is to be repaid after five years at one time together with
interest, how much is the total repayment amount to serve this debt?
GIVIN REQUIRED SOLUTION
Loan =175,020.80 Amount A = P(1+RT)

R = 14% A=
175,020.80(1+14%*5)
T = 5 years A = 297,535.36
Task 1.4 (06) Develop Understanding of the Ethiopian Financial System & Markets
What are major roles of National Bank of Ethiopia? List at least three roles
 To issue paper money & coins

 To act as an agent of the government
 To fix & control the foreign exchange rates
 To manage & administer the country’s international reserves
 To supervise loans of commercial banks & regulate interests
 To regulate the supplies, availability & costs of money & credit
 To license & supervise banks & hold commercial banks reserves &
lend money to them
Project 2 Perform Tax Accounting
(Time allotted: 30 Minutes)
Instruction: Under this project you are expected to perform the following tasks
based on the information proved.
The project covers the following units of competency
EIS BAW2 07 0812 Develop Understanding of Ethiopian Taxation
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LA-Same Trading PLC is a VAT registered merchandizing Business. During the
current month the company purchased merchandise for Br 10,000,000 vat
exclusive price. During the same month the Company sold 75% of merchandise
purchased for Br 10,000,000 vat inclusive price and paid administrative expenses
during the month were Br 500,000. Business profit tax is 30%.
Using the above information the candidate is expected to perform the following
tasks
Task 2.1
Determine the indirect tax liabilities of the business for the government
GIVEN
Purchased = 10,000,000 VAT exclusive:- But, 75% of it was sold out….75% of

10,000,000 =7,500,000
Sales = 10,000,000 VAT inclusive
Administrative expense = 500,000
Profit Tax Rate = 30%
SOLN
Revenu = 8685652.17
Cost good sold =7500000
G,P= 1,195,652,17
Expense = 500000
IBT = 695,652.17
BPT = 695,652.17 × 30
=208695.65
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Task 1
Net profits = IBT _ BPT =695,652.17 _ 208,695.65 = 486,956.52
TASK 2 Direct tax = 208695.65
TASK 3 IDT OUTPUT _ INPUT
1,304,347.83 _ 1500000
VAT Refundamable==195652.17
Is this uneder for answer is ronng??????
1. OUT PUT = Sales*Rate

OUT PUT = 10,000,000*15/115
OUT PUT = 1,304,347.84
2. IN PUT = Purchase*Rate
IN PUT =7,500,000*15%
IN PUT = 1,125,000
3. VAT Payable = OUT PUT – IN PUT

VAT Payable = 1,304,347.84 – 1,125,000
VAT Payable = 179,347.84
4. Business Profit = Sales – (VAT + Expense)

Business Profit = 10,000,000 - (179,347.83+500,000)
Business Profit = 9,320,652.17
5. Business Profit Tax = business Profit*Given Tax Rate

Business Profit Tax = 9,320,652.17*30%
Business Profit Tax = 2,796,195.65
Task 2.2
Determine the direct tax liabilities of the business for the government
Project 3 Develop personal budget, saving plan & Business practice
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Time allotted: 1hr
Instruction: Under this project you are expected to perform the following tasks
based on the information provided
The project covers the following competencies
EIS BAW2 08 0812 Develop and use a Personal Budget
EIS BAW2 09 0812 Develop and use a Saving Plan
EIS BAW2 10 0812 Develop Business Practice
ASTER earns monthly net salary of Br 15,000 & she has the following
expenditures.
Clothing …………………………………………. 10%

Food ……………………………………………... 35%
Entertainment …………………………………… 30%
Transport ……………………………………….. 2%
House rent ……………………………………… 20%
Others ………………………………………….. 1%
In addition ASTER has a plan to open a beauty salon that costs Br 100,000.00
Task 3.1 (08) Develop & use a Personal Budget
A. How much would be total net income of ASTER for one year?
15,000*12 = 180,000
INCOME:-
Salary
………………………………………………………………………………
15,000
EXPENSES:-
Cloth ………………10%……………….. 1,500
Food ………………35%……………….. 5,250
Entertainment …….30%……………….. 4,500
Transport ………….2%………………… 300
House rent ……….20%………………… 3,000
Others …………….1%………………….. 150
Total Expenses …..98%
……………………………………………………………….. 14,700
Saving 300
300
%Saving
2%
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B. How much is the total expenditure of ASTER for one year?
14,700*12 = 176,400
Task 3.2 (09, 13) Understanding of saving for the society & Develop business
practice
A. Determine the amount of ASTER’s saving at the end of the year

300*12 = 3,600
B. How long it takes her to open the beauty salon if 50% of the cost is to be
covered from her saving?
GIVEN REQUIRED SOLUTION
Capital = 100,000 Time IF 3,600 = 1year
A = 50,000 50, 000 = ?
(50,000*1year)/3,600 = 14years
She eager to open the beauty salon as soon as possible & she request your bank.
In order to improve her savings what do you advice to ASTER?
 She must revise her spending habits & make a basic change to her
spending habits
 She might need to find other source of income by doing extra work
Which expenditure do you think she has to reduce significantly?
 Entertainment
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CATEGORY6
1 For Qualification based … together with the tests.
2 for competency-based assessment, you are required to perform …
3 read the project package/s and written test (if applicable) properly.
4 all you questions and clarifications should be addressed to the assessor only.
5 complete the task/project described in the project package.
6 you are given fifteen (15) minutes reading time for each project and the number of
hours allocated for each project is indicated in the project information sheet.
7 after you finish this assessment you are required to submit all the project package
and written tests questions provided to you.
8 you are allowed to use your tool/instruments with the permission of the assessor,
and this must be presented to the assessor before start of the test.
9 after you finish the assessment, you are required to sign the competency
assessment results summary, and return to the stock room all the tools and materials
borrowed
10 you are also required to clean up you work station after completion of you work.
Project information
Given the necessary tools, equipment and information, you are expected to perform
the following four projects. Based on the cases given below under each project, you
are expected to perform all tasks under each respective project accordingly.
Assessment venue: well-equipped assessment center or real work place.
Total time for all projects 2:30 Hrs
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Project 1: perform tax computation
Competency covered:
EIS BAW2 07 0842 Develop understanding of taxation
Time allotted: 30 minutes
MDF manufacturing PLC imported materials for Br 2,500,000 and purchased local
materials for Br 1,000,000 before VAT for production of gloves in 2014. The local
custom duty charge Br 200,000 paid to tax authority. The factory sold 30,000
gloves at Br 150 each before VAT including 2% sales commission. The company
paid Br 53,000 for administrative expenses and employment income tax of Br
30,000. Imported materials are exempted from VAT & withholding taxes. Business
profit tax is 30%.
Given
Imported material -----,---------------------------250,000
purchase local material --------------------------1,000,000
custom duty ----------------------- -------------------200,000
sells --------------------------------------30,000*150=4,500,000
commission------------------------2% =2/100=1.02
Administrative expense ---------------53,000
EIT ----------------------------------------30,000
Task 1.1 calculate net profit
cost of good sold-------2,500,000+1,000,000+200,000
=3,700,000
net sells. =4,500,000/1.02=4,411,764.7
Income statement
sells --------------------------------------------4,411,764.7
cost of good sold ------------------------(3,700,000)
gross profit ----------------------------------711,764.7
administrative expense ---------------(53,000)
income before tax -----------------------658,764.7
BPT =30% of income before tax
BPT =658,764.7*30%
=197,539.4
Net profit =IBT-BPT
=658,764.7-197,539.4
= 461,225.28
Task 1.2 calculate direct tax & indirect tax
Direct tax= EIT+BPT
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= 30,000+197,539.4
=227,539.39
Indirect tax =net vat +other tax
Net vat =output -input
net vat = 4,500,000*15/100=675,000 output
=1,000,000*15/100=150,000 input
NV =675,000-150,000
=525,000
Indirect tax
=525,000+200,000
=725,000
Task 1.3 identify documents for taxation
 Purchase invoice
 Sales invoice
 VAT invoice
 Withholding invoice
 Payroll sheets
 Tax return statements
 Goods transits vouchers
Project 2
DL Hotel present loan proposal to Dashen bank & the bank provided the credit
schemes to the loan. The first option is to borrow Br 230,000 mortgages to be paid
with 8years at equal installment at a rate of 15% semi-annually. The second &
third options are to borrow Br 450,000 for 30 months at equal installment at a rate
of 13% and Br 300,000 for a year at equal installment at a rate of 12.5% semi-
annually respectively. The bank agreed with the hotel & the loan disbursed with
additional service charges of Br 27,500 (one time borrowing cost for the three
loan
Task 2.1 calculate the interest expense & other charges at the end of the first year
I first need to find installment amount (one round payment) for all three cases.
Then each interests.
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1. Case1
 Installment Amount = Loan/(round*time)
 Installment Amount = 230,000/(2*8)
 Installment Amount=14,375
I1 = P1RT I2 = P2RT
I1 = 230,000*15%0.5 I2 = (230,000 – 14,375)*15%*0.5
I1 = 17,250 I2 = 16,171.88
------------------------------------------------------------------------------------------------------------------------
-------------
2. Case2
 Installment Amount = Loan/ (round*time)

 Installment = 450,000/ (2.5*2)
I1 = P1RT I2 = P2RT
I1 = 450,000*13%*0.5 I2 = (450,000 –
90,000)*13%*0.5
I1 =29,250 I2 = 23,400
-----------------------------------------------------------------------------------------------------
--------------------------
3. Case3
 Installment Amount = Loan/ (round*time)

 Installment = 300,000/ (1*2)
I1 = P1RT I2 = P2RT
I1 = 300,000*12.5%*0.5 I2 = (300,000 –
150,000)*12.5%*0.5
I1 = 18,750 I2 = 9,375
============================================================
===============
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Finally, interest expense & other charges at the end of the first year
For Option 1 I1 +I2 + Service charge 17,250 +16,171.88 + 27,500 =

60,921.88
For Option 2 I1 +I2 + Service charge 29,250 + 23,400 + 27,500 = 80,150
For Option 3 I1 +I2 + Service charge 18,750 + 9,375 + 27,500 = 55,625
Task 2.2 calculate the total loan repaid at the end of second year
Since installment is known, and there are four rounds in two years; I then, multiply
that number by four.
I. 14,375*4 = 57,500
II. 90,000*4 = 360,000
III. 150,000*2 = 300,000
 Because it’s time is 1 year which means ended with 2 rounds
Task 2.3 Demonstrate major documents required to open bank account at NIB bank
by the hotel
 TIN
 Contact details
Task 2.4 What is the advantage of credit facility to the society?
 Interest income
 For emergency
 For investments
 For security purpose
 Meets financial requirement
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Project 3 Develop and use personal budget and saving plan
Competencies covered:
EIS BAW2 08 0812 Develop and use a personal budget

EIS BAW2 09 0812 Develop and use a saving plan
EIS BAW2 13 0812 Develop business practice
Time allotted: 50minutes
ABEBE an employee of 3F furniture Company earns a monthly net income of Br

15,000.00. 25% of the total income is used to cover his fixed cost and the remaining
income is used to cover his variable expense and savings. His saving is 15% of his
variable expense. The actual variable expense is 85% of budgeted variable expense
but, fixed cost remains constant. If the variable expenses budget is deficit deducted
from personal saving and if surplus added to personal saving. His salary expected
to increase by 20% for the month of February 2015.
Task 3.1 Prepare budget performance report for the month of December 2014.
I. Fixed Cost=25%Times His 2VE = 11,250

Basic Salary VE = 5,625
Fixed Cost = 25%*15,000
Fixed Cost = 3,750 III. PS = 15%VE
PS = 15%*5,625
II. AVE + VE + PS + FC = PS = 843.75
Income
0.85VE + VE+ 0.15VE + IV. AVE = 85%VE
3,750=15,000 AVE = 85%*5,625
AVE = 4,781.25
ATO ABEBE
Personal Budget Performance Report
For Month ended December 31, 2014
Item Budget Actual Amount Variance

Amount
Basic Salary 100% 15000
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Fixed Cost 25%BS 3,750
Actual Variable 85%VE 4,781.25

Expense
Variable Expense 5,625.00
Total Expense (14,156.25)
Personal Saving 15%VE 843.75
%Saving 5.625%
Task 3.2 Develop personal budget for March 2015.
New Salary = 20%Old Salary + Old

Salary AVE + VE + PS + FC = Income
New Salary = 20%*15,000 + 15,000 0.85VE+VE+0.15VE+4,500 = 18,000
New Salary = 3,000 + 15,000 2VE = 13,500
New Salary = 18,000 VE = 6,750
Fixed Cost = 25%*Income PS = 15%*VE

Fixed Cost = 25%*18,000 PS = 15%*6,750
Fixed Cost = 4,500 PS = 1,012.50
AVE = 85%VE
AVE = 85%*6,750
AVE = 5,737.50
ATO ABEBE
Personal budget performance report
For month ended March 31,2015
Item Budget amount Actual amount variance
Salary 20% + BS 18000 -
Fixed cost 25%BS 4,500
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Actual variable 5,737.50
expense
Variable expense 6,750
Total expense (16,987.50)
Personal saving 15%VE 1,012.50
%saving 5.625%
Task 3.3 Calculate total saving at the end March 2015 and identify the related
investment opportunities.
Total Saving = Total Income – Total Expense

Total Saving =18,000 – 16,987.50
Total Saving = 1,012.50
Task 3.4 Identify the investment related risks of personal saving.
Project 4 Develop understanding of the Ethiopian financial system to work

effectively in the financial sector
Competencies covered:
EIS BAW2 01 0812 Work effectively in the financial service sector

EIS BAW2 02 0812 Work effectively with others
EIS BAW2 03 0812 Use business technology
EIS BAW2 06 0812 Develop understanding of the Ethiopian financial system and
market
EIS BAW2 11 0812 Participate in work place communication
EIS BAW2 12 0812 Work in team environment
EIS BAW2 14 0812 Apply continuous improvement processes (kaizen)
Time allotted: 30 minutes
In the ARADA city administration 25 individual’s established medium scale

enterprise (MSE) that works on trading, service rendering and small scale
manufacturing. The team management, marketing of the product and service and
continues improvement in performances are the challenge of the MSE. Assume that
you are an employee of this enterprise and perform the following tasks which are
related to your jobs.
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Task 4.1Identify your own role and responsibility within the team
 Task Role
 Maintenance Role
 Self-Centered Role
Task 4.2 demonstrate your role to work effectively in the financial service sector
 Respect differences
 Effective communication
 Share information to colleagues
 Provide support to team members
 Understand duties & responsibilities
 Seek assistance from workgroup members
Task 4.3 demonstrate your role in work place meetings and discussions
 Listen and respond sensitively

 Encourage others to contribute
 Respond appropriately to others
 Listen carefully to what others say
 Adapt what you say to suit different situations
 Respond perceptively to contributions from others
 Take part in one-to-one as well as group discussions
 Develop points & ideas, with an awareness of others' feelings, believes &
opinions
Develop personal budget
Monthly salary income 15000
clothing ----------------------------------------10%
food. ----------------------------,-,----------35%
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entertainment -----------------------------30%
Transportation -------____________ 2%
House rent. -----------------------------20%
Other. -------------------------------- 1%
additional information plan to open salon that costs birr =100000
Task 1.1
A. How much would be total net income of aster for one year
B. How much is the total expenditure of aster for one year
Task 1.2
A. Determine the amount of Aster saving end of one year
B. How long it task to open the beauty salon if 50% of the cost to convert from her
saving .
Item monthly income and Annual income and expenditure

expenditure.
 Income
salary income 15000 180000
 expenditure
Clothing 1500 18000
food 5250 63000
entertainment 4500 54000
Transportation 300 3600
House rent 3000 36000
Other 150 1800
Total expense 14700 176400
Saving 300 3600
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Task 1.1
A. Amount of total Income =180000 one year
B. Amount of total expense = add total expenditure
= 176400 for one years
Task 1.2
A. Amount total saving =income _Expense
=180000_176400
=3600
B.Additional information of beauty salon
100000*50/1000=50000
Project five.
Ato kidane plant to open a cafe after a year. The total capital needed to open the
business is birr 100,000 .to achieve the goal ato kidane deposit 1,000 birr per
month starting from January ,2015 up to December ,2015 in Dashen bank at
Hawasa branch .During this period Ato kidane earn cash interest income of birr
2008 for his deposit in dashen bank after one year .one Januaryb,2016 ato Kidane
gave loan proposal to dashen bank to fulfill the deficit amount. at 10% interest rate
and management fee 5% of the total loan amountequally distributed for 3 years and
repaid quarter at equal installmentfor 3 years based on the above information
perform the following tasks
Task 5.1 Calculate the deficit capital of Ato kidane ,if he withdraws the entire
deposit amount
Task 5.2 Calculate the total interest expense and service charge at the end of the
first year ?
Task 5.3 Demonstrate the instrument traded in the short term money market by
Ethiopian
government to fulfill the budget deficit
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Task 5.4 Describe how you provide a service to your customer if you are bank
clerk in Dashen bank
Given
The initial capital amount =100,000 birr
Ato kidane deposit 1,000 birr per month =12,000 per year
Interest income per year 2,008 birr so Ato Kidane has 14,008 at the end of the year
which is (12,00 +2,008)
Borrow the deficit amount at 10% interest rate for 3 years
Task 5.1 the deficit amount =(100,000 -14,008) =85,992
installment payment = 85,992/12
=7,166
Task 5.2 interest and service charge at the end of the first year
st
1 term Interest expense =85,992 *0.1*1/4 =2,149.8
2nd term Interest expense = 78,826*0.1*1/4 = 1,970.65
3rd term interest expense =71,660*0.1/4 =1,791.5.
4rth term. interest expense =64,494*0.1/4 =1,612.35
The total interest amount the end of the 1st years is
Total interest =2,149+1,970.65+1,791.5 +1,612.35
=7,524.3 birr
service charge it management fee which is equal to 5% of the total

loan=85,992*5%=4,299.6 equaly distributed for 3 yy so ,the year
service charge =4299.6/3 =1433.2 birr
Task 5.3 financial assets traded in short term money market includes
 bills of exchange
 commercial bills
 government bills
 promissory notes
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Task 5.4 service to customer should be provided in the following manner
 Customer is greeted and served with respect and professionalism

 customer is provide with infn as required in a timely, accurate and effective
manner
 any queries about transactions should be answered fully
 transactions out side the my knowledge
Project six
Ato Alemu is salaried employee in XYZ manufacturing company in dire dawa net
salary of 750 per week .In January 2016 the company paid two month net salary
bonus for each employeefor their performance in the year 2015 .Ato Alemu has
fixed and variable expense for the month .Fixed expenditure are 100 birr for
university fee ,200 birr for transport ,300 birrr for rent and 40 birr for magazine
and variable expense are 50 birr for cloth, 25 birr for mobile card ,100 birr for
recreation and 70 birr for gas .in order to increase his saving Ato Alemu
understands to change his behavior and plans to decrease variable expense by 5%
starting from February .Based on the above information perform the following tasks
Task 6.1 calculate the total amount of saving for the month January 2016
Task 6.2 calculate the total amount of saving for the month February 2016
Task 6.3 Demonstrate the required behavior skills for successful budgeting
Task 6.4 Demonstrate obstacles for ato alemu to financial goals
Solution
Monthly income =750*4=3,000 birr per year
Ato Alemu has 6,000 birr bonus in January his total income is equal to
3,000+6,000=9,000 birr
EXPENSE
Fixed expense
university fee .........................100 birr
Transport ................................200 birr
Rent. .......................................300 birr
magazine ................................40 birr
COC GUIDANCE
0918 920 784
BY ȻH3RNNET GUCHI
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Total fixed expense ...........640 birr
Variable expense
cloth expense ....................................50 birr
Mobile card ......................................25 birr
recreation ............................................100 birr
Gas expense ........................................ 70 birr
Total Variable expense .........245 birr
Total Fixed and Variable expense =640+245 =885
Task 6.1 Total amount of saving for the month January 2016
9,000-885 =8115
Task 6.2 Total amount of saving for the month February ?
income =3,000
The variable expense is decreased by 5% =245-(245*5%)
= 245-12.25 =232.75 birr
so the total amount of saving =3,000 -(640+232.75)
=3,000-872.75=2127.25
Task 6.3 Demonstrate the required behaviour and skills for successful budgeting
Behaviour & skills required for successful budgeting may include:-
 controlled spending
 Discipline approach to money
 organisational Skills
 Record keeping skills
Task 6.4 Demonstrate obstacles for ato Alemu to financial goals
obstacles that might prevent financial goals being achieved may include:-
 Being unemployed
 particularly long term unemployed
 insufficient income to afford items that are beyond the individuals means
COC GUIDANCE
0918 920 784
BY ȻH3RNNET GUCHI
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 unexpected circumstances such as
- losing a job ,falling ill ,not being able to work
Project seven .Develop understanding ot Taxation
IHLAS trading plc is a registered and licensed supplier of enjera to different

universities in ethiopian .During the year 1012 the company earns an income of birr
1,500,000 and 1,800,000 from Adama and AAU respectively including vat. The
total cost of the product is 1,980,000 before vat . In addition the company earns
birr.160,000 per year from other sources of income with zero vat rates .In the other
hand the company incurred birr 300,000 general and administrative expense for the
year .During the last month of 2012 the company withholds birr 65,000 for
employment income tax and the company is expected to pay 30% business profit
tax.
Task 1.1 Calculate the net profit
Task 1.2 Calculate direct tax liabilities for the year
Task 1.3 Determine indirect tax liabilities for the year
Task 1.4 Describe direct & indirect taxes
Given
Revenue from sales =1,500,000+1,800,000 =3,300,000
cost of good sold =1,980,000
so output VAT =3,300,000*15/115 =430,434.78
Total revenue =net sales +other income
Net sales= revenue from sales - output VAT
= 3,300,000-430,434.78 =2,869,565.22
Total revenue =2,869,565.22 +160,000 =3,029,565
Revenue ................................................................ 3,029,565.22
Less cost of good sold ........................................ (1,980,000)
Gross profit ........................................................... 1,049,565.22
Less expense ........................................................ (300,000)
COC GUIDANCE
0918 920 784
BY ȻH3RNNET GUCHI
Page 49
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income before tax ................................................ 749,565.23
Business profit tax =749,565.22*30% =224,869.56
Task 7.1 Net profit = 749,565.22-224,869.56 =524,695.66
Task 7.2 Direct tax
=BPT +EIT =224,869.56+65,000 =289,869.56
Task 7.3 calculate indirect liabilities for a year
sales =1,500,000 +1,800,000 =3,300,000 including vat
3,300,000*15/115 =430,434.78
cost of goods of sold =1,980,000 before vat
=1,980,000*15/100= 297,000
Indirect tax =430,434.78 -297,000 =133,434.78
COC GUIDANCE
0918 920 784
BY ȻH3RNNET GUCHI
Page 50
Y

Calculate Personal Budget and Savings Plan

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Calculate Personal Budget and Savings Plan

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ATEGORY1

TASKS 1.1 PROCESS CUSTOMER TRANSACTION

TASKS 1.2 WORK EFFECTIVELY IN THE FINANCIAL SERVICES SECTOR

TASKS 1.3 PROCESS CUSTOMER ACCOUNTS

A. What is the procedure required to close the existing account?

A. What are the procedures required to close the existing account?

B. What are the procedures required to open a new account

TASKS 1.4 WORK EFFECTIVELY WITH OTHERS

TASKS 1.5 UNDERSTANDING OF DEBT & CUSTOMER CREDIT

 What is the importance of providing customer credit?

PROJECT 2 PERFORM TAX ACCOUNTING

Time allowed 30 minutes

1. Purchase of products for the month of December including VAT birr

Purchase = 115,000 VAT Including 1. Output =

5. Business Profit Tax = Business

TASKS 2.2 Determine the direct tax liability of the company

TASKS 2.3 Understanding how to present tax to inland tax authority

Project 3 DEVELOP PERSONAL BUDGET & SAVING PLAN & BUSINESS

Time allowed 1hr

Description Actual Income & Expenditures

(December 31, 2015)

Salary Income (net) 6,000

School Fee 700

Cost Sharing 100

TASKS 3.1 DEVELOP & USE A PERSONAL BUDGET

Item Actual budget Budget amount

Salary 6,000 6,600

Cloth 500 550

Food 2,000 2,200

Utility 500 550

School fee 700 770

Cost sharing 100 110

Transport 100 110

Other 150 165

Total Expenses 4,200 4,620

SAVING 1,800 1,980

%SAVING 30% 30%

TASKS 3.2 DEVELOPING PERSONAL BUDGET

 Assume that expenditures will increase by 10% & no change in salary

Salary 6,000 6,000

Cloth 500 550

Food 2,000 2,200

Entertainment 100 110

Utility 500 550

School fee 700 770

Cost sharing 100 110

Transport 100 110

Other 150 165

Total Expenses 4,200 4,620

SAVING 1,800 1,380

%SAVING 30% 23%

TASKS 3.3 DEVELOPING OF SAVING PLAN

Saving of 2015 = 1,800 Additional amount = Plan-Saving

Plan = 2,000 Additional amount = 2,000-1,800

REQUIRED Additional amount = 200

Additional amount = ___?

TASKS 3.4 UNDERSTANDING OF SAVING FOR THE SOCIETY

Besualem PLC is an importer of reinforcement bars from Belgium. The company

sales..................1,541,000 inclusive vat

sales =1,541,000/1.15 =1,340,000

cost of good sold......(0)

gross profit ..............1,340,000

BPT =1,325,000*30/100 =397,500