Professional Documents
Culture Documents
MDF manufa, cturing PLC imported materials for birr 2,500,000.00 and purchased local
materials for birr 1,000,000.00 before VAT for production of glove in 2014. The local custom
duty charges are birr 200,000 paid to tax authority. The factory sells 30,000 gloves at Br 150
each before VAT including 2% sales commission. The company paid 53,000 administrative
expenses and employment income tax of birr 30,000. Imported materials are exempted from
VAT and withholding taxes. Business profit tax is 30%.
DL Hotel present loan proposal to Dashen bank and the bank provides three credit schemes to
the loan. The first option is to borrow Birr 230,000.00 mortgages to be paid with 8 years at equal
installment at rate of 15% semiannually. The second and third options are to borrow Birr
450,000.00 for 30 months at equal installments at rate of 13% and birr 300,000.00 for a year at
equal installments at rate of 12.50% semiannually, respectively. The bank agreed with the hotel
and the loan disbursed with additional service charges of birr 27,500.00 (one time borrowing cost
for the three loans).
Task 2.1: Calculate the interest expense and other charges at the end of first year.
Task 2.2: Calculate total loan repaid at the end of second year.
Task 2.3: Demonstrate major documents required to open bank account at NIB Bank by the
hotel.
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Project 3: Develop and Use Personal Budget and Saving Plan
Abebe an employee of 3F Furniture Company earns a monthly net income of Birr 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.
Task 3.3: Calculate total saving at the end of March 2015 and identify the related investment
opportunities.
In the Arada city Administrative 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
challenges of the MSE. Assume that you are an employee of this enterprise and perform the
following tasks which are related to your jobs.
Task 4.1: Identify your own role and responsibility within team.
Task 4.2: Demonstrate your role to Work Effectively in the financial service sector.
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Answer for Model Exam One
Project One
Revenue:
Operating Expense:
Selling Expenses--------------------------------------------90,000
Administrative Expense------------------------------------53,000
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Task 1.3: Identify Relevant Documents for Taxation
Task 2.1 Calculate the interest expense and other charges at the end of first year
Other Charge=27,500
Task 2.2: Calculate Total Loan repaid at the end of second year
Interest =PRT
Interest = 201,250*0.15*1=30,187.50
= 29,468.75
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Task 2.3 Demonstrate major document required to open bank account at NIB Bank by the
hotel
Task 2.4: What are the advantages of credit facility to the society?
Saving 1,434.38
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Task 3.2 Develop Personal Budget for March 2015.
Saving 1,721.25
Task 3.3: Calculate total saving at the end of March 2015 and identify the related
investment opportunity.
- There is investment opportunity in the future by 1,721.25 because the planned expense
less than actual expense incurred.
Interest risk
Price risk
Buying securities on credit
Purchasing power decrease
Task 4.1 Identify your own role and responsibility within the team
Role of Team
Effectively provide higher quality and introduce more innovations
Members of teams that work well together have relatively low stress levels.
A diverse range of professional groups working together is associated with higher levels of
innovation
Good quality meetings, communication and integration processes in teams contribute to the
introduction of new and improved ways of performance.
Clear leadership contributes to effective team processes, to high quality production and to
innovation
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Responsibilities of team
Improve quality
Find better ways of working and make continuous improvements
Provide training
Make it possible for everyone to do a better job with greater satisfaction
Task 4.2: Demonstrative your role to work effectively in the financial service sector
Communicate positively
Cooperate with others
Look and act the part of a responsible worker
Set high work standards
Prioritizing activities
Get better at managing your time
Get better at goal setting
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Model Exam Two
Instruction: Under this project you are expected to perform the following tasks based on
the information provided.
Brothers PLC is a merchandising business which is established in order to purchase and sale of
soft drinks and packed waters. Currently the PLC is an account holder (Current Account) of Nib
International Bank and planned to borrow a term loan from the bank in order to supplement its
working capital. Assuming that you are a bank clerk of this bank:
Assume that MrTola need to start a new merchandising business in the next year (December 31,
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 MrTola should deposit today (January 1, 2015).
B. Calculate the amount of interest income at the end of December 31, 2016.
Chala is a new employee joining Ethiopian Electric Utility as Accounting Clerk and he
understood that there are some information’s and activities he need to know about the
organization to be an effective worker.
What are the possible information’s and activities should Chala need to know about the
organization to be effective worker?
Ethio Telecom was using Commercial Bank of Ethiopia Nazreth branch for deposits and the
company need to close the existing deposit account and open a new account at Adama branch.
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Task 1.4: Work Effectively with Others
What are the activity atoYohannes need to follow for the effectiveness of the team member?
In Ethiopia, there are many financial institutions which are providing credit facility for customers
like Cooperative banks. Assume that you are the employee of this institution, what are the
importances of providing customer credit?
Project 2: Perform Tax AccountingInstruction: Under this project you are expected to
perform the following tasks based on the information provided.
Kiya PLC is a famous merchandizing business which was 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’s are related
to the business activities of Kiya PLC and assume that profit tax is 30% 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 birr 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.
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 given month.
Task 2.2: Determine the direct tax liabilities of the business for the given month.
A. Determine the total amount of tax Kiya PLC will present to tax authority
B. When does the indirect tax will be presented to tax authority
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Instruction: Under this project you are expected to perform the following tasks based on
the information provided.
The following data is given for Actual income and expenditures of Bilise for the month of
December 2015. The difference between total income and expenditures is personal saving. Using
her personal saving, Bilise has a plan to establish a business in the future.
Using the above information the candidate is expected to perform the following tasks:
Assume that the Salary income and expenditures will increase by 10% prepare budget plan and
Budget variance for January 2016.
Assume that expenditures will increase by 10% and no change in Salary Income, prepare budget
plan for January 2016.
Assume that expenditure of December 2015 remains unchanged in January 2016 and Bilise need
to find other source of income in addition to her salary to have birr 2,000 saving amount in
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January 2016. Calculate the additional amount to her salary that Bilise need to finance to reach a
saving of birr 2,000.
Project One
Task 1.1: Calculating the Present Value and Interest
A. Present Value = Future Value (PVFn,i)
= 110,250(1/ (1+.05)2)
= 110,250 (.90703)
= 100,000
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Be a better team leader
Create a culture of learning
Recognition and incentives
Operating processes
Support innovation
Build commitment
Establish leadership
Foster team work
Set ground rules for the team
Task 1.5: Importance of Providing Customer Credit
Establishing trust with customers
Increase customer loyalty
Enhance your reputation
Gain a competitive edge
Increase sales
Competitive edge over businesses
Give interest to their members
Sense of security
Project Two
Task 2.1: Computing Indirect Tax
Purchase (Input VAT) = 115,000 x 15/115 = 15,000
Sales (Output VAT) = 210,000 x 15/100 = 31,500
VAT Payable = Output VAT – Input VAT
= 31,500 – 15,000 = 16,500
Total Indirect Taxes = VAT Payable + Excise Tax
= 16,500 + 6,000 = 22,500
Task 2.2: Computing Direct Taxes
Sales --------------------------------------------------------210,000
Less: CGS -------------------------------------------------100,000
Income Before Tax -------------------------------------- 110,000
Less: Business Income Tax -------------------------------33,000
Net Income -------------------------------------------------77,000
Total Direct Taxes = Business Income Tax + Employee Income Tax
= 33,000 + 15,000 = 48,000
Task 2.3:
A. Total amount of Tax to be paid:
= 22,500 + 48,000 = 70,500
B. Monthly i.e within 30 days of the next month (VAT and Excise Tax) and quarterly (TOT).
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Project Three
Task 3.1: Develop and Use a Personal Budget
Description Planned Income Actual Income Income Variance
INCOME:
Income salary 6000 x 10% = 6,600 6,000 600
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Other 150 x 10% = 165 150 15
Total 4,620 4,200 420
Project One
BesualemPlc 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 3,000.00 ETB to ERCA for VAT. During the month of November it earns birr
1,541,000 VAT inclusive sales of reinforcement bars. In addition BesualemPlc paid an
employment income tax of 6,000 ETB per month collected from employees and also paid
administrative and general expenses of 15,000.00 ETB during the month.
Task 1.1: Determine amount of Direct tax liability of the company for month of October 2014.
Task 1.2: Determine the amount of input and output VAT for the month of October 2014.
Project Two
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
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saving/withdrawal amount of more than 200,000.00 ETB to the National Bank of Ethiopia and
financial intelligence office.
Task 2.1: Identify the five organizational policies, guidelines, legislation, procedures or code of
practice.
Task 2.2: As a team member in the bank identify your roles in supporting your team member
and your work place interaction mechanisms.
Task 2.3: Identify the business technology applied to send your report to the national bank of
Ethiopia and financial office.
Project Three
AtoFantahun is a permanent employee of Ethio Construction Company earns monthly net salary
of 9,500 ETB. The monthly personal expenditures as per the following description and the
remaining amount will be deposited to his personal saving account.
1. Clothing ………………………….15%
2. Food and Beverage………………..20%
3. Medical…………………………….5%
4. Rent………………………………..20%
5. Transportation……………………..2%
6. Education…………………………..10%
He plans to open Barber Shop with capital of 80,520.00 ETB after one year. As per his business
plan, this capital is covered from annual personal saving account and the remaining from Addis
Saving and Credit Association with 8.5% annual interest rate for three years and the principal
amount will be paid semiannually at equal installment.
Task 3.1: Prepare monthly and annual budget for the year considering that there is no change in
earning and expense in the year.
Project Four
Process Customer Accounts and Transaction
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Assume you are an account officer of AlemPlc among the tasks and responsibilities listed on
your job description to handle issues related to financial sectors, to create business relationship
with concerned government and private companies and to process customers’ account and
transaction of your company.
Task 4.1: Demonstrate the possible document required from your companies to open current
bank account in CBE.
Task 4.2: Demonstrate the advantages of saving deposit account to your company if you maintain
saving account.
Task 4.3: Demonstrate the possible challenges that affect your job with regards to banks
activities.
Project One
= 397,500 + 6,000
= 403,500
= 201,000 – 3,000
= 198,000
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Project Two
Anti-discrimination legislation
Electronic fund transfer (EFT) code of conduct
Finance code
Financial service reform act (FSRA)
Financial transaction reports act
Industry code of practice
Legislation covering competition prudential regulation
Anti-money laundering and counter terrorism financing acts.
Task 2.2: Roles in supporting a team member and work place interaction
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= Monthly Income x 12
= 9,500 x 12 = 114,000
Personal Saving
= Income – Expenditure
Chamber of commerce
Financial planners and financial institution representatives, business planning specialists
and marketing specialists
accountants
lawyers and providers of legal advice
government agencies
industry/trade associations
online gateways
business brokers/business consultants
Task 3.3:
A. Amount of Loan
= Capital – Personal saving
= 80,520 – 31,920
= 48,600
B. I= PRT
= 48,600 x 8.5% x1
= 4,131
Maturity Value of 1st Year
MV = P + I
= 16,200 + 4,131
= 20,331
Project One
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Bilise is a secretary at Gafat Company her net earnings of 3,000.00; 1,000.00 and 1,500.00 for
salary, transportation allowance and house allowance respectively, 60% of her net salary and
transportation allowance is for her variable expenditure on the other hands, the sum of 50% her
variable expenditure and 70% of her house allowance is fixed expenditure, the excess amount
from her total expenditure will be deposited to saving account develop under taxation.
Task 1.2: Determine the percentage of variable expenditure, fixed expenditure and saving
amount from total earning.
Task 1.3: Demonstrate the possible ways to reduce the personal expenditure and increase
personal saving develop understanding taxation.
Project Two
During the month of December 2014, FM manufacturing earns birr 0.5 million VAT inclusive
from sales of finished products with a manufacturing cost of 0.3 million VAT inclusive and
general and administrative expense of 80,000 ETB reported from finance department FM
manufacturing declares bonus of 48,000.00 ETB for the years 2014 to be paid on January,
February, and March at equal installment in 2015 for AtoBilisumma who permanent employer is
earning 7,800.00 ETB per month for January 2015, during the month of January, AtoBilisumma
earn over time of 1,200 ETB.
Task 2.1: Determine total of direct tax liability of FM manufacture for the month of December
2014.
Task 2.2: Determine the total tax liability of AtoBiisumma for the month of January 2015.
Task 2.3: Determine indirect tax liability of FM manufacturing for the month of December.
Project Three
Gada International Bank Share Company is a newly established commercial bank to which you
are assigned as its bank clerk as long as manager of FalmataPlc which is a new customer to the
bank has appropriated and requested you to open and process current account its name you have
opened the bank account accordingly.
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Task 3.1: List the possible guidelines or directives that help you open and process customer
accounts.
Task 3.2: Demonstrate the procedures for customer identification and the accuracy and
sufficiency of information provided by customer.
Task 3.3: Demonstrate at least five possible transactions that can be processed by you.
Task 3.4: Determine and list at least five equipments which are needed to automate the opening
and processing of customer transaction.
Project Four
ORO engineering corporation has signed a road construction agreement contact with Ethiopia
road authority to reward construction the main road from Addis Ababa to Dire Dawa with a
contact amount of 250 million 80% of the contract amount will be financed from the loan
released by commercial bank of Ethiopia at an annual interest rate of 13% to be paid and the paid
as following terms payment.
Project One
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Transportation Allowance 1,000 1,000*6 = 6,000
House Allowance 1,500 1,500*6 = 9,000
Total Income 5,500 5,500*6 = 33,000
Variable Cost
60%*3000 + 1000 2,400 2,400*6 = 14,400
Fixed Cost
50%*2400+70%*1500 2,250 2,250*6 = 13,500
Total Expense:
(Fixed+ Variable Cost) 4650*6 4,650*6 = 27,900
Saving 850 5,100
Task 1.2:Determine the percentage of variable expenditure, fixed expenditure and saving
amount from total earning.
Variable Cost = 2400/5500*100 = 43.63%
Fixed Cost = 2250/5500*100 = 40.9%
Saving Rate = 850/5500*100 = 15.45%
Task 1.3: Possible ways to reduce the personal expenditure and increase personal saving
FM Manufacturing
Income Statement for Tax Purpose
For the month of December 31, 2014
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Gross Profit ----------------------------------------------173,913.04
Less: General administrative expense----------------- 80,000
Income before Tax ----------------------------------- 93,913.04
Less: Income Tax (93,913.04 x 30%) --------------- 28,173.90
Net Income------------------------------------------------ 65,739.14
Task 2.1: Determine total of direct tax liability of FM manufacture for the month of December
2014.
Personal Income Tax =7,800*35% - 662.50
= 2067.5
Total Direct Tax for 2014=28,173.90 + 2,067.50 = 30,241.40
Task 2.2: Total tax liability of AtoBilisuma for the month of January 2015.
Project Three
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Information required for processing customer accounts:
Authenticity of signatures
Checks against or links to existing customer account information
Completeness of documentation
Provision of sufficient documentary evidence (points) to meet the requirements for
establishing a new account.
Task 3.3: Duties expected from a Bank Clerk:
Project Four
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5 200,000,000 15% 30,000,000 5,200,000 100,000,000 35,200,000
6 200,000,000 5% 10,000,000 1,300,000 0 11,300,000
200,000,000 84,500,000 284,500,000
Task 4.1:
Project One
Task 1.1: List Standard procedures and system of financial services institutions.
Project Two
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Task 2.1: Write at least four (4) fixed expenses
November 1: Purchase Machinery for cash birr 50,000 subject to VAT of 15%.
November 2: Purchase merchandise for cash birr 100,000 from XYZ subject to VAT of 15%.
November 5: Sold Merchandise for cash VAT exclusive price of birr 400,000.
November 10: Purchase merchandise on account from ABC Company birr 30,000.
November 20: Sold Merchandise on account at VAT exclusive price of birr 10,000.
Required:
Task 3.4: Determine the amount of VAT to be paid declared by Walta to tax authority as of
November 30.
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Task 1.1: Standards may include:
Project Two
Task 2.1: Fixed Expenses includes
Rent Expenses
School Expenses
Mortgage expense
Insurance Expenses
Utility Expenses (electricity, water, etc)
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Reduce grooming expense
Use public transportation
Move to a less expensive area
Project Three
Task 3.1: Recording the Necessary Journal Entry
November 1: Machinery…………………………………………..50,000
VAT Receivable…………………………………….7, 500
Cash……………………………………………..57,500
November 2: Purchase………………………………………….100,000
VAT Receivable…………………………………..15,000
Cash……………………………………………..115,000
November 5: Cash……………………………………….460,000
Sales………………………………………400,000
VAT Payable……………………………….60,000
November 10: Purchase…………………………………30,000
VAT Receivable………………………….4,500
Accounts Payable…………………………….34,500
November 20: Accounts Receivable……………………11,500
Sales………………………………………10,000
VAT Payable……………………………….1,500
Task 3.2: VAT Payable
= 60,000 + 1,500
= 61,500
Task 3.3: VAT Receivable
= 7,500 + 15,000 + 4,500
= 27,000
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Task 1.1: Demonstrate the possible documents required from your company to open current
bank account in CBE.
Task 1.2: Demonstrate the advantages of saving deposit account for your company if you
maintain saving account.
Task 1.3: Demonstrate the possible challenges that affect your job regards to banks activities.
He plans to open a Barber Shop with capital of 80,520.00 ETB after one year. As per this
business plan, this capital is covered from annual personal saving account and the remaining
from Addis Saving and Credit Association at 8.5% annual interest rate for three years and
principal amount will be paid semiannually at equal installment.
Task 2.1: Prepare monthly and annual budget for the year consider that there is no change in
earnings and expenses in the year.
Task 2.2: Identify the source of information’s to develop his business plan.
Task 3.1: State Financial and non-financial institutions that are available in Ethiopia and
financial markets in Ethiopia.
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Task 3.2: State financial instrument that are used in the money market in Ethiopia and on a
global scale and instruments traded on the short term money market in Ethiopian context.
Task 3.3: Explain the company strategies or opportunities in measuring business performance.
Project Four: Understanding of Taxation and Direct Tax and Indirect Tax
Commercial Bank of Ethiopia purchase IT infrastructure materials Br 300,000 before VAT and
the have five employees and the company paid employment income tax Br 8,500 for the month
of January 2015. The company earns income for the year 2015 Br 1,081,000 VAT included.
Task 4.1.Calculate direct and indirect tax for the year 2015.
Task 4.2.State the necessary documents for the tax in the questions.
Answer for Model Exam Six
Project One
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S.N Expenditures Monthly Budget Annual Budget
1 Clothing 9,500 x 15% = 1,425 1,425 x 12 = 17,100
2 Food and Beverage 9,500 x 20% = 1,900 1,900 x 12 = 22,800
3 Medical 9,500 x 5% = 475 475 x 12 = 5,700
4 Rent 9,500 x 20% = 1,900 1,900 x 12 = 22,800
5 Transportation 9,500 x 2% = 190 190 x 12 = 2,280
6 Education Fee 9,500 x 10% = 950 950 x 12 = 11,400
Total 6,840 82,080
= Monthly Income x 12
= 9,500 x 12 = 114,000
Personal Saving
= Income – Expenditure
Chamber of commerce
Financial planners and financial institution representatives, business planning specialists
and marketing specialists
accountants
lawyers and providers of legal advice
government agencies
industry/trade associations
online gateways
business brokers/business consultants
Task 2.3:
D. Amount of Loan
= Capital – Personal Saving
= 80,520 – 31,920
= 48,600
E. Amount of Principal and Interest repayment for the first year
I= PRT
= 48,600 x 8.5% x1
= 4,131
Maturity Value of 1st Year
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MV= P + I
= 16,200 + 4,131
= 20,331
Commercial Banks
Investment Banks
Insurance Companies
Brokerages
Investment Companies
Project Four
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Output VAT = 1,081,000 X 15/115 = 141,000
= 141,000 – 45,000
= 96,000
Direct Taxes
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Project One: Process Customer Transaction
AtoAsefa opens a new business on March 1, 2007 using the following transactions.
On March 1, 2007:
On March 2 paid birr 1,800.00 for the three month rent on building leased.
On March 8 paid birr 100.00 for customers entertainments and other items.
On March 20 purchase additional repair machinery on account for birr 2,000 from the suppliers.
On March 31 paid Br 500.00 cash for electricity & for other utility consumed during the month.
On March 31 Services rendered to customers during the month but not collected by the end of
the month birr 4,600.00.
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On May 20,2014 Rahwa Grocery sold birr 20,000.00 merchandise which is subject to 5% sales
tax terms 3/10,n/30. On May 21 the purchaser returned for birr 2,000.00 which is for defective
goods and paid for the remaining amount on May 31, 2014. Based on the above information
answer the following tasks:
Instruction: Under this project you are expected to perform the following tasks based on the
information provided:
Task 3.4. List at least four important skills and habits of a team member.
Task 4.1. List at least four conditions that business opportunities may be influenced.
Task 4.2. List at least five conditions business viability may include.
Answer for Model Exam Seven
Project One
March 1: Recording the Necessary Journal Entry
Cash --------------------8,300
Supplies ---------------2,000
Office Equipment ----19,000
Asefa’s Capital -----------------29,300
March 2:
Prepaid Rent --------------1,800
Cash ----------------------------------1,800
March 3:
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Machinery ------------------3,600
Cash ----------------------------- 3,600
March 4:
Advertising Expense --------------200
Cash ----------------------------------- 200
March 8:
Entertainment Expense -----------100
Cash ---------------------------------100
March 13:
Salary Expense -----------------1,200
Cash -------------------------- 1,200
March 16:
Cash ---------------------4,400
Service Revenue -------------4,400
March 20:
Salary Expense -----------------1,200
Cash -------------------------- 1,200
March 20:
Repair Machinery ------------------2,000
Accounts Payable --------------------2,000
March 24:
Supplies ------------------800
Cash -------------------- 800
March 27:
Salary Expense -----------------1,200
Cash -------------------------- 1,200
March 31:
Utility Expense -----------------500
Cash --------------------------500
March 31:
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Cash ---------------------------4,200
Service Revenue -----------------4,200
March 31:
Accounts Receivable --------------4,600
Service Revenue --------------------------4,600
March 31:
Drawing -----------------1,800
Cash ------------------------1,800
Project Two
Determination of Taxation
Task 2.1: 20,000 x 5% = 1,000 (credit side)
Task 2.2: 2,000 x 5% = 100 (debit side)
Task 2.3: Credit Side – Debit Side
= 1,000 – 100 = 900
Or
20,000 – 2,000 = 18,000 x5% = 900
Project Three: Team Performance
Task 3.1: Performance Review Tips of a Team
Support innovation
Leadership matters
Hire the right people
Keep learning
Streamline processes
Build commitment
Get the team involved in managing resources
Leave rank at a door
Listen actively
Task 3.2: Heart of a True team
Demonstrates reliability
Communicates constructively
Listen’s actively
Functions as an active participant
Shares openly and willingly
Cooperates and pitches into help
Exhibits flexibility
Shows commitment to the team
Workers as a problem solver
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Task 3.3: Settings of Ground Rules of a Team
Start the meeting on time
Have a prepared agenda with an objective and expected outcomes
End the meeting on time
Parking lot discussion items that don’t relate to this meeting’s objective
Complete action items as committed
One person speaks at a time
All team members are equals
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Model Exam Eight
Project One
Process Customer Accounts
Assume that you are the employee of Commercial Bank of Ethiopia in the Clerical position and a
new customer wants to open a new bank account and you are required to perform the following
tasks:
Task 1.1: What is the information you provide to your customer?
Task 1.2: What is the information required to for opening accounts?
Task 1.3: What is the information required to transfer or close a bank account?
Task 1.4: How could you process the customer accounts?
Project Two
Develop Understanding of the Ethiopian Financial System and Markets
You are required to perform the following task:
Task 2.1: Describe the specific financial markets in Ethiopia. Which financial market enables us
to translate the Dollar to Birr?
Task 2.2: List down the major purposes of Ethiopian Financial Markets.
Task 2.3: Explain the major participant in the financial markets.
Task 2.4: What are the instruments traded in the short term money markets?
Project Three
Personal Budget and Saving
The total income of budgetary plan for Megabit 30, 2006 is 3,000. The following information is
given during the month:
S.N Expenses Budgetary Budgetary Actual Variance
rate for the expenditure for budget for budget for the
month of the month of the month of month of
Megabit Megabit Megabit Megabit
1 Food &Groceries 35% 1,000
2 Rent expense 10% 350
3 Transportation 15% 400
4 Clothes &Shoes 10% 250
5 Medical expense 8% 250
6 Laundry 3% 125
7 Utility 5% 150
8 Education expense 5% 200
Saving
Total Budget
Task 3.1: Prepare the budget Expenditure in birr for the expenses incurred during Megabit.
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Task 3.2: Prepare the budget Variance.
Task 3.3: Calculate the net saving in birr and saving rate during the month.
Project Four
Develop Understanding of Taxation
Brothers Plc is a business organization and during Megabit 30, 2006 the following information
are given for the tax purpose:
Task 4.1: Calculate the Direct and Indirect tax for the month of Megabit.
Task 4.2: What are the roles of TAX for the Ethiopian Economy?
Answer for Model Exam Eight
Project One
Resolve Problems
Provide operational Support
Sell bank products
Provides information to customers by verifying understanding of request; answering
questions; offering assistance.
Initiates service by recording requests; forwarding to dispatching.
Collects revenue by receiving and recording payments.
Resolves billing problems by identifying the problem; explaining procedures;
Improves quality results by evaluating processes; recommending changes.
Accomplishes customer service
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Purpose for which the account will be used.
Required links to other accounts held.
Task 1.3: Required information to transfer or close an account:
Account details to enable transfer of remaining funds.
Details of possible complaints relating to the account.
Reasons for transfer or closure of accounts.
Task 1.4: How could you process customer accounts?
Identify customer accounts needs.
Open customer account.
Transfer or close customer account.
Administer the account process.
Project Two
Task 2.1: Financial markets in Ethiopia includes:
bond market
derivatives markets
foreign exchange market
money market including the short term money market
Options and futures market.
NB: Foreign Exchange market enables us to translate Dollar to Birr?
Task 2.4: Instruments traded on the short term money market include:
Bills of exchange
Commercial bills
Government bills
Promissory notes
Treasury bills.
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Megabit Megabit Megabit Megabit
1 Food &Groceries 35% 1,050 1,000 50
2 Rent expense 10% 300 350 (50)
3 Transportation 15% 450 400 50
4 Clothes &Shoes 10% 300 250 50
5 Medical expense 8% 240 250 (10)
6 Laundry 3% 90 125 (35)
7 Utility 5% 250 150 0
8 Education expense 5% 150 200 (50)
Saving
Total Budget 2730 2,725 5
= 3,000 – 2,725
= 275
3,000 = 100
275 =?
27,500/3,000 = 9.17%
Project Four
Vat Payable
= 3,000
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financing government activity
maintaining equity in the national economy
promoting efficiency where markets fail to control pollution or health dangers
social infrastructure
social services
Model Exam Nine
Project One
Task 1.2.Process Customer Account and Work effectively in the financial sector.
At the end of year one the PLC has planned to shift its business and hence wants to close its
accounts which are maintained in your bank. As a bank clerk, what activities do you perform to
close the accounts of brothers PLC?
NIB International Bank is one of the financial institutions which was established in order to play
its intermediary role in the Ethiopia economy. Explain this intermediary role of your bank.
What is the importance of receiving credit for firms from financial institutions such as Brothers
PLC given above?
Task 1.5: In order to start a business evaluating business viability is essential. If Tamirat has
proposed a new business for you and ask for advice in order to evaluate its viability as an adviser
of him, how can you evaluate his proposed business viability?
Project Two:
In addition, the company earned birr 160,000 from other source of income with zero VAT rate.
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On the other hand the company incurred 300,000 general and administrative expenses 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% profit tax.
Project One
Task 1.1:
I = PRT
MV = P+I
= 200,000 + 24,000
= 224,000
Credit provision
Liquidity provision
Risk management services
Remittance of Money
Rapid Economic Development
Promotion of Entrepreneurship
Employ credit analysts who have the ability to assess the creditworthiness of firms that
wish to borrow funds.
Serve as financial intermediaries by placing the securities that are issued by firms.
Repackage the deposits received from investors into loans that are provided to firms.
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Flexibility
Cost Effective
Retained Profits
Tax Benefits
Source of Capital
= 3,300,000 x 15/115
= 430,434,78
= 3,029,565.22
Sales ---------------------------------------------------------------------------------3,029,565.22
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Less: Business Income Tax (30%) -------------------------------------------------- 224,869.57
= 289,869.57
Indirect Tax
= 133, 434,78
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