INFOLINK COLLEGE, DEPARTMENT OF ACCOUNTING AND FINANCE

Ethiopian Government accounting (20 %)

GROUP ASSIGNMENT FOR AcAF 3nd Year Weekend Student

Alemayehu.T (MSc)

Core instruction

 A maximum of Two students in a group

 The instructor has no tolerance for plagiarism; a team will submit a paper where one team
member copied part of his contribution from another source behind his or her team
mates. The group result will be zero
 Your opportunity to have a question officially assigned to you will occur in the lecture
period
 Please be sure to attend class on the summation day

1. The government organization Purchase of Computer, furniture and vehicles for ETB 25,000,
35,000 and 58,000 respectively including VAT. A cheque payment was effected for ETB
100,556.52 after deducting a withholding of 2% (ETB 2,052.17) and VAT (ETB 15,391.30)

Required: prepare the appropriate journal entries

2. Adola Woreda purchased office supplies from ABC stationery which values Birr 13,800
including VAT. The value before value added tax is Birr 12,000.
Required: Calculate the net pay and prepare the appropriate journal entries

3. Your government office Purchase of 1,546 agricultural implements was made at a cost of
Birr 9,000 from Kotebe Metal Factory. The supplier was paid Birr 5,000 in cheque and the
remaining amount paid after a month.

Required: prepare the appropriate journal entries

4. The government office Settlement of Credit-Considering the above amount was settled by
Cheque in the agreed period, the accountant will prepare the payment voucher and code

Required: prepare the appropriate journal entries for the above credit settlement

5. During the month of Hamle, electric bill of Birr 3,512 received from Ethiopian
Electric Power Corporation (EEPCO) and paid. The bills represent electric consumption for
 the months of Miazia, Genbot and Sene. That was recorded as accrued expenditure payables
from the prior year's recurrent expenditure.

Required: The provision for electric charges shall be made on Journal Voucher:

a) recorded as accrued expenditure payables

b) Record as paid the accrued expenditure
N.B There is no a difference between estimated accrued expenses and actual
expenses in the following year

6. i. Staff employees’ payroll of a month shows the following details:-

Total Amount
Basic Salary of 21,500
Allowance 2,500
Income Tax 3,100
Salary advance deduction 2,400
Net Pay 18,500
Net Salary not claimed by 2,750

ii. A cashier prepares a cash receipt voucher for the unclaimed portion of Birr 2,750.
iii. Some days later, some staffs claimed Birr 1,500 after they return back from a
long field work.
Required: Journalize of the above transactions

7. A region transfers a sum of money to woreda. If the transfer was Birr 30,000 in cash
Required: i. Record of the region

ii. Record of the woreda

8. Salary advance of Birr 2,500 was paid to staff members on March 16, 2014. On
the basis of the payment voucher and supporting documents

Required: a) Pass the journal entry

b) post to the respective employees’ subsidiary ledger

9. A contract is signed to construct a building for 100,000,000 Birr. Terms of contract are:
 Initial advance of 20%. This advance adjusted proportionately with each payment
certificate approval.
  Retention of 10% withheld from each payment certificate & paid after final
approval.
Steps in payment are:
 Payment of 20% advance.
 Payment certificate when 40% complete.
 Payment certificate when 80% complete.
 Payment certificate when 100% complete

Required: i. pass the journal entry when you received a payment certificate of 40% complete

ii. Pass the journal entry when Payment of retention after final approval of project:

10. Sidama region investment bureau made a purchase order of birr 1,980,000. But the ordered
goods have been on transit. Due to that the bureau cannot make a payment on the last day of
the fiscal year and the goods will deliver until Hamle 12. Your organization has made an
agreement for Amounts due to suppliers until 3days after delivered the goods

Required:

a) You are an accountant of this government organization. What is an accountancy action that
would have been taken as a result of failing to meet the deadline? This waived provided that the
obligation can be satisfied.

b) Record the transaction that you are taken for satisfied the obligation

Bonus (5 points)
Where totals net cumulative debit or credit balance for all ledger cards in the
subsidiary ledger is not equal to the net cumulative debit or credit balance on the
respective control account’s ledger card in the General Ledger, an error exists.
What types of errors should be verified to balance the subsidiary and General
Ledgers?