Coc Exam-1

PART ONE
PART ONE
1. What are the factors that may affect your enterprise daily activities?
 Change to procedures or  Other work demands
new procedures  Resources issues
 Competing work demands  Technological/ equipment
 Environmental factors such break down
as time, weather
2. What type of techniques would you see to assess /check your enterprise quality services
delivery?
 Visual inspection  Assessment may requires
 Physical measurement evidence may include
 Check against design/  Measured materials
specification component part of product
 Identify case of deviation of  Record basic information
materials  Recommended suitable
preventation action
3. What are the alternative procedures that you develop to standardize enterprise
activates to realize continues improvement?
The five S’s may include (continuous improvement)
I. Sort- identify and eliminate all unnecessary item

II. Systemize:- arrange necessary item in proper order and easy to access
III. Sweep or shine:- clean your work place regularly
IV. Standardize:- keep the work area to specific standards
- Follow procedures and check list for activates
V. Sustain:- create culture where in all members practice the above 4 ways of life
BY BELAYNEW M.
QUEENS COLLEGE Page 1
4. What are the recommended techniques that you apply to documents & measure your
enterprise current usage of resources (sustainability)?
 Examining & documenting resource in worker.
 Examining invoices from supplier.
 Examining relevant information & data.
 Report from other parties in the process of implementing improvement.
5. What are the relevant competencies to be considered while you conducted self-audits
of current skill knowledge?
Relevant competences may include
 Academic results  Personal attribution

 Interpersonal skill  Personal skill example demonstrate
 Organizational skill leadership, team work
 Practical skill directly related to
work place
6. What are the most factors that you pay attention in selecting and appropriating location
for your enterprise?
Major factors may include
 Economic (local economic)
 Population
 Competition
7. What are the possible practice to be undertaken in compliance with your enterprise
ethical standards, policy and guidelines?
Work practice may include
 Quality of work  Productivity
 Punctuality  Resource fullness
 Efficiencies  Innovationists (creativity)
 Effectiveness
BY BELAYNEW M.
8. What are the possible practices that you would employ to document and get equipment
and resource maintenance in your enterprise?
Equipment or resource maintenance may include
 Adding toner
 Cleaning equipment regularly
 Cleaning paper jams
 Organizing service calls
 Replacing paper
9. What are the procedures that you follow in order to retain safe working environments?
Safe working procedures may include
 Discussing and negotiating problems and tasks with other team members
 Identifying and reporting any risk or hazards
 Sharing knowledge and skill
 Solving problem as a team
 Using business equivalents according to guidelines
10. As work with organization requirement what would you be the key working knowledge
and understanding that you need to develop and utilize with respect employee and
employer right and responsibility?
The employee’s right and responsibilities are
 Confidentiality and privacy of enterprise, client and colleagues information
 Obeying lawful order
 Attendance
 Protection to discrimination and sexual harassment
 Punctuality
 Right to union of representation
 Knowing the terms and condition of own employment
BY BELAYNEW M.
The employer right and responsibilities are
 Responsibility of providing a safe environmental
 Right to dismiss employees. The employees can be dismissed if they are:
Carless or cause of accident, commits criminal’s effence and acts of disloyalty.
11. As an employee how would you contribute for effective work place relationship in your
enterprise so that duties and responsibility are carried out by co-worker in a positive
manner?
Duties and responsibilities of co-worker are
Job discrimination and employment agreement
Organizational structure
Organizational policy relevant to work role
Supervision and accountability requirement including OHS
Codes of conduct
PRACTICAL (COMPUTER)
1.1 process word activities
1. Open MS –program and process the documents below.

2. Create a folder by your full name in my document folder.
3. Save your document by the file name “document A” under the folder created above
Information management
Records, like This stage their And informational then used
living organism, physical content are and maintained
have life cycles. form (paper, estimated. (they mature).
They are electronic, Records
H2O, 2n
created or magnetic, are
received (born or photographic)
adopted). At
BY BELAYNEW M.
ontrolling records through their life cycle is the basis for records management. During the
C creation phase, records can be controlled through forms management (establishment
standards for forms creation, design, analysis and revision).
1.2 process excels /spreadsheet / Activities
Under this task you are expected to create excel to process and complete the required data
1. Open Ms –Excel program and process the following documents.

2. Save your document by the file name TABLE A under the folder created above by your
name.
Ethiopian consumer Association
Wheat
Buying Total Total
Customer price Buying selling
No Name unit quantity /quintal price price Revenue
Cheralia
1 PLC 2 1,300
NAS Foods
2 PLC 5 1,250
Afia Foods
3 PLC 6 1,200
4 KOJJ PLC 4 1,330
Quintal
DH Geda
5 PLC 3 1,150
Sum
Minimum
Maximum
Average
BY BELAYNEW M.
Given formula
1. Total buying price =Quantity x buying price

2. Total selling price =Total buying price + 10% Total buying
3. Revenue =Total selling price – Total buying price
4. Complete Sum, Minimum, Maximum and Average
Wheat buying and selling chart

9,000
8,000
amount of money
7,000
6,000
5,000
buying price /quintal
4,000
total buying price
3,000
2,000 Total selling price
1,000 Revenue
0
Cheralia PLC NAS Foods Afia Foods KOJJ PLC DH Geda
PLC PLC PLC
Customer name
1.3 process simple written communications
Under this task you are expected to process simple written communication as per the given
installation
1. Open Ms –word program and complete the incomplete letter by rearranging the
required parts
2. Use current data and Ref. No(FTA A/0001/07)
3. Consider yourself as an authorized department head to sign on the letter
4. Save it by the file name “Letter” under the folder created above
BY BELAYNEW M.
We Federal TVET Agent (FTA) sends you (City Government of Addis Ababa Occupational
competence Assessment of Addis Ababa center) the validities assessment tools on the following
occupational for assessment purpose.
Sector Qualification Level Version
Business Sector Basic Clerical Level 1 V1 & V2

work
Enc 10 page
BY BELAYNEW M.
PART TWO
1. Competence one demonstrate OHS processes in work place communication

I. work safely
 Follow establishes safely procedures
 Cary out pre starting system
II. implemented work pleas safely requirement
 Identify queries and report to designated person
 Identify existing and potential hazards
III. participation in OHS consultative processed
 Contribution to work pleas meeting
 Raise issue
IV. follow safely procedures
 Identify and report emergency incidents

2. demonstrate work values
I. Apply work value/ethics
 Commitment
 Sense of urgency
 Sense of purpose
 Love for work
 Hi movement
 Goal oriented
 Being knowledgeable
 Sense of responsibilities
 Sensitive to other
 Loyalty to work/company
II. define the purpose of work
III.deal with ethical problem
BY BELAYNEW M.
3. demonstrate how your organization and complete daily work actives
I. organization work schedule
 Negotiate and agree upon work goal and plan
 Plan prioritize work load with allocated time frame
II. complete work tasks
 identify factors affecting work requirement and take appropriate action
 use business technology efficiently and effectively
III. review work performance
 seek feedback on work performance from supervisors or colleagues
 monitor and adjust work according to feed back
4. show how to work with environment sustainable work using resource
I. identify current resource use
 identify resource used in own role
 document and measure current usage of resource
II. comply with environmental regulation
 follow work place product
 Report breaches or potential breaches to appropriate personnel
III. seek opportunity to improve resource efficiency
 Follow organization plan and resource efficiency
 Make suggestions improvement in own work area
5. Demonstrate the major competencies required for successful enterpriser ship?
1. A body of knowledge -consists of a set or a body of information stored
2. A set of skill -is asset to apply knowledge
3. A cluster of trait -is a total of peculiar quality or characteristics
6. Demonstrate how you work effectively with others
I. develop effective work place relationship
Duties and responsibility are don in a positive manner
To promote cooperation and good relationship
BY BELAYNEW M.
II. contribute to work group activities
Support is provide to team member to ensure goal are meet
Contractive contribution to work group goals and task are made
7. Show the procedure of continuously improvement of your product the (five S) to meet
the demand of your consumer
1. sort –identify and eliminate all unnecessary items
2. systemize –arranged necessary items in proper order and easy to access
3. sweep or shin- clean your work place regularly
4. standardize-keep the work area to specified standard
5. sustain –create culture where in all member practice the above 4 ways of
life
8. Demonstrate how you use business equipment and resource?
I. select equipment or resource
 Identify and access business equipment of resources
 Estimate quantity correctly to complement the task
II. Operate equipment
 Operate equipment in accordance with manufacture specification
 Identify equipment fault accurately and take action
III. Maintain equipment or resource
 Maintain equipment or resource to support completion of task
 Under take maintain to ensure equipment meets specification
9. Demonstrate how you improve your personal skill (plan skill development)
I. seek advice on future career direction in industry or organization
 Identify and provide personal goal
 Identify and additional skill required and determine appropriation method
II. conduct self-assessment of skill
 Identify work life and study experience
 Asses current skill knowledge altitude
BY BELAYNEW M.
III. prepare portfolio of evidence
 Identify and discuss types of evidence required
 Develop a clear understanding of the purpose of evidence collect example of
evidence for evidence
10. Demonstrate how to you apply quality standard requirement report
I. asses own work
 Completed work is cheeked
 Faults and any identified causes are recorded and reported
II. assess quality of received articles
 Received material or final product are cheek
 Cause and any identified faults are identify
III. record information
 Basic information on the quantity performance is record
 Recorded of work quality deviation
IV. study cause of quality deviation
 Cause of deviation from final product are report
 Suitable preventive action is recommended
V. complete documentation
 Information on quality and production performance is recorded
 All production process and outcome are recorded
PRACTICAL PART
A B C D E F G
No Type of product asset liability capital income expense total
1 Textile production 8,000 6,000 2,000
2 Petroleum production 16,000 9,000 6,000
3 Cement production 15,000 8,000 7,000
BY BELAYNEW M.
4 Leather production 20,000 15,000 5,000
5 Sum
6 Min
7 Max
8 average
8 average
Given information
NB: income=15% of assets

Expense=15% of liability
Total =assets +liability +capital +income - expense

Request
1. Draw the line chart

2. save this file to my computer to local disk C
BY BELAYNEW M.
PART THREE
Project one
1. Demonstrate skill and knowledge on how operate office equipment

 Adding toner
 Cleaning equipment regularly
 Cleaning paper jams
 Organizational service calls
 Replacing paper
2. Identities and demonstrate hazards that may occur in the given work place.
Identities:
 Toxic substance or materials
 Filling
 Fire accident
 Flood
Demonstrate
 Follow establish safety procedures

 Identify queries and report to designated person
 Raise OHS issues
 Follow organizational procedures
3. Express how to apply five S procedures (structured approach to housekeeping)to own
job and work area.
I. Sort- identify and eliminate all unnecessary item
II. Systemize:- arrange necessary item in proper order and easy to access
III. Sweep or shine:- clean your work place regularly
IV. Standardize:- keep the work area to specific standards
- Follow procedures and check list for activates
BY BELAYNEW M.
V. Sustain:- create culture where in all members practice the above 4 ways of life
4. Show employee right and responsibility in an organization.
The employee’s right and responsibilities are
 Confidentiality and privacy of enterprise, client and colleagues information
 Obeying lawful order
 Attendance
 Protection to discrimination and sexual harassment
 Punctuality
 Right to union of representation
 Knowing the terms and condition of own employment
Project two
1. Demonstrate how the entrepreneurs organize enterprise.
 Describe and explain the principle concept
 Varies forms of enterprise
 Category and classify enterprise
 Discusses how to become entrepreneurs
 Explain advantage and disadvantage of self-employment
 Develop one’s own business plan
 Written business plan
 Discuss three major competences for successful entrepreneurship
 knowledge _consists of a set or a body of information stored
 skill _is asset to apply knowledge
 trait _is a total of peculiar quality or characteristics
2. Express how entrepreneurs carry out the environmentally sustainable works
A. identify current resource use
BY BELAYNEW M.
B. comply with environmental regulation
C. seek opportunity to improve resource efficiency
3. Display how to develop quality standards in an enterprise
A. asses own work
 Completed work is cheeked
 Faults and any identified causes are recorded and reported
B. assess quality of received articles
 Received material or final product are cheek
 Cause and any identified faults are identify
C. record information
 Basic information on the quantity performance is record
 Recorded of work quality deviation
D. study cause of quality deviation
 Cause of deviation from final product are report
 Suitable preventive action is recommended
E. complete documentation
 Information on quality and production performance is recorded
 All production process and outcome are recorded
4. Demonstrate work value
I. Apply work value/ethics
 Commitment
 Sense of urgency
 Sense of purpose
 Love for work
BY BELAYNEW M.
 Hi movement
 Goal oriented
 Being knowledgeable
 Sense of responsibilities
 Sensitive to other
 Loyalty to work/company
II. define the purpose of work
III. deal with ethical problem
PRACTICAL PART
Write office memorandum for the following
The human resource department of Almeda Textile factory wrote a letter to inform about 9
employees who hired by the company during the current fiscal period to the finance
department so that it can prepare their payroll sheet at the end of every month
Answer
From: Human resource department
To: Finance department
Data: December 31, 2010
Subject:- inform finance department about new employees hired by the company
The human resource department of Almeda Textile factory wroe a letter to inform about 9
employees who hired by the company during the current fiscal period to the finance
department so that it can prepare their payroll sheet at the end of every month
Signature
BY BELAYNEW M.
Project two
Name of
student Biology Maths Chemistry Geography sum Average Rank
Behailu 65 66 88 79
Shime 67 80 94 80
welde 77 91 78 94
Chane 98 66 55 75
Calculate sum, Average and rank for the above mentioned student’s result .
Solution
 Sum for Behailu =65+66+88+79→Enter or =select sum from sum→enter

Do the same for all students
 Average for Behailu =sum/4
Do the same for all students
 Rank for all students =auto sum→ More functions →Rank →select the first average from
Behailu in the first box →select all average from Average column in second box →press
f4 of fx →Enter
Project three
Total Total
Date Q P revenue expense Net pay Division
Monday 20 6
Tuesday 70 8
wedness day 40 7
Thursday 30 5
Friday 50 9
BY BELAYNEW M.
N.B
PART FOUR
Project one
1. Demonstrate how to implement OHS and apply procedure (five S) to meet the demand
of customer.
Implement OHS include
 Identify queries and report to designated person
 Identify existing and potential hazard
(5s) may include
 Sort: identify and eliminate all unnecessary item.
 Systemize: Arrange necessary item in proper order and easy to access.
 Sweep or shine: clean your work place regularly.
 Standardize: keep the work area to specified standards.
 Sustain: create culture where in all member practice the above 4 ways of
life.
2. Demonstrate how work effectively in business environment and apply work value?
Work effectively in business environment include
a). Work within organizational requirements
 Identify roles and responsibilities of colleagues and immediate supervisors

 Identify and read organization’s requirements and responsibilities and seek
advice from
BY BELAYNEW M.
b) Work in a team
 Complete allocated tasks as required
 Seek assistance when difficulties arise
c) Develop effective work habits
 Identify work and personal priorities and achieve a balance between
competing priorities
 Apply time management strategies to work duties
Apply work value include

 Commitment  Being of knowledge
 Sense of urgency  Sense of responsibility
 Sense purpose  Sensitive to other
 Love for work  Loyalty to work/company
 High movement
 Goal-oriented
3. Demonstrate how you organize and complete daily activities and work effectively?
Organize and complete daily activities include
a) Organization work schedule

 Negotiate and agree upon work goal and plan
 Plan and prioritize work load with allocated time frame
b) Complete work takes
 Identify factory affecting work requirements and take appropriate action
 Use business technology efficiency and effectively
c) Review work performance
 Seek feedback on work performance from supervisor or colleagues
 Monitor and adjust work accordingly to feedback
BY BELAYNEW M.
Work effectively include
i. Develop effective work place relationship

 Duties and responsibilities are don in a positive manner
 To promote cooperation and good relationship
 Feedback provided by other in the team is encourage
ii. Contribute to work group activities
 Support is provide to team member to ensure goal are meet
 Contractive contribution to work group goals and task are made
Project two
1. Demonstrate how you apply quality standard and use business equipment.
Apply quality standard include
A. Assess own work

 Completed work is cheeked
 Faults and any identified causes are recorded and reported
B. Assess quality of received articles
 Received material or final product are cheek
 Causes of any identified faults are identify
C. Record information
 Basic information on quality performance is record
 Record of work quality deviation
D. Study case of quality deviation
 Case of deviation from final product are report
 Sustainable preventive action is recommended
E. Complete documentation
 Information on quality and production performance is recorded
 All production process and outcomes are recorded
BY BELAYNEW M.
Use business equipment include
I. Select equipment or resource

 Identify and access business equipment of resource
 Estimate quantity correctly to complement of resource
II. Operate equipment
 Operate equipment in accordance with manufacture specification
 Identify equipment faults accurately and take action
III. Maintain equipment or resource
 Maintain equipment or resource to support completion of task
 Under take maintain to ensure equipment meets specification
2. Demonstrate how you receive and respond to work place communication and characterstics of successful
enterprunership?
Receive and respond to work place communication include
I. Follow routine spoken message

 Information instruction are property recording
 Instruction acted up on immediately according with information received
II. Perform work place duty following written notices
 Rotini written instruction following sequences
 Feedback is given to work place supervisor based on information
Characterstics of successful enterprunership include
I. a body of knowledge _consists of a set or a body of information stored
II. a set of skill _is asset to apply knowledge
III. a cluster of trait _is a total of peculiar quality or characteristics
3. Demonstrate how you participate improvement sustainable work practice and improve personal skill
development or plane skill development?
Sustainable work practice include
I. Identify current resource use
BY BELAYNEW M.
II. Comply with environmental regulation
III. seek opportunity to improve resource efficiency
PERSONAL SKILL INCLUDE
I. seek advice on future career direction in industry or organization

 Identify and provide personal goal
 Identify and additional skill required and determine appropriation method
II. conduct self-assessment of skill
 Identify work life and study experience
 Asses current skill knowledge altitude
III. prepare portfolio of evidence
 Identify and discuss types of evidence required
 Develop a clear understanding of the purpose of evidence collect example of evidence for evidence
IV. Function of entrepreneur
 Are primary mover
 Who obtain finance for the business
 Manage the business
 Encourage competition
Demonstrate characteristics of entrepreneurship
 Altitude
BY BELAYNEW M.
 Self confidence
 Responds to feed back
 Discus how to become enterprising
 Independency
 Hard working
1. Apply five S procedure

i. Develop understanding of quality system
 Discus quality insure procure of enterprising organization
 Explain s5 system as part of quality insure with work of organization
ii. Sort need item from un needed
 Identify all item the work area
 Distinguish b/n essential and non-essential item
 Place any non-essential item appropriate place other then the work place
iii. Set work place order
 Identify the best location from each essential item
 Place each essential Item assigned the location
iv. Shine work area
 keep the work area clean and tidy at all item
 Conduct regular housekeeping activity during shift
BY BELAYNEW M.
v. Standard activity
 Follow procedure
 Follow check list activity were available
 Keep work area specified standard
vi. Sustain 5s system
 Clean up after compilation of jobs and before coming next jobs or end of shift
 Recommend improvement to life the value of comp lance in the work place
BY BELAYNEW M. Page 24
LEVEL TWO
THEORETICAL
AND
PRACTICAL
(CALCULATION)
PART
PART ONE
Project one
Ato Belayneh receives 3000 birr from the supermarket he is working in as a salary. He has the
following expenditures. 800 birr for food, 430 birr for clothing, 70 birr for car gas expense and
200 birr recreation.
Task 1.1 calculate personal saving?
Solution income basic salary 3000
Expenses food expense 800
Cloth expense 430
Car gas expense 70
Recreation expense 200
Total expense 1500
Personal saving = total income – total expense (3000 – 1500) = 1500
Actual income Estimated income

Item and Expenditure and expenditure
Income 90% 2100
Clothing 100% 800
Food 85% 400
Gas 50% 200
Recreation 70% 120
Task 1.2. Calculate the actual income and expenditure.
Task 1.3. Calculate actual saving and estimated saving.
Task 1.4. Calculate percentage of actual saving against estimated saving.
Solution Task 1.2
Total actual income = 2100 x 90% = 1890
Expenditures cloth expense = 800 x 100%= 800
Food expense = 400 x 85% = 340
Gas expense = 200 x 50% = 100
Recreation exp = 120 x 70%= 84
Total actual expenditure = 1324
Task 1.3 Actual saving = actual income – actual expenditure
= 1890 – 1324 = 566
Estimated saving = Estimated income – Estimated expenditure
= 2100 – 1520 = 580
Task 1.4 percentage of A.S against E.S = x 100 = x 100 = 97.59
Project Two
ABC is merchandising business enterprise engaged in the buying and selling of products. The
enterprise purchase and sell with birr 86,250 and birr 115,000 respectively. The enterprise has
two permanent employees.
Name of
employees Basic salary Over time
Getachew 1500 300
Behailu 800 400
Task 2.1 calculates direct tax of the month?
Task 2.2 calculates indirect tax of the company?
Answer
Task 2.1 direct tax = EIT
Getachew taxable income = Basic salary + Over time
= 1500 + 300 = 1800
EIT = 1800 X 15% - 142.5 = 127.50
Behailu taxable income = 800 + 400 = 1200
EIT = 1200 X 10% - 60 = 60
Total EIT = 127.5 + 60 =187.5
Task 2.2 indirect tax = output vat – input vat
Output vat = 115,000 x 15% = 17,250
Input vat = 86,250 x 15% = 12,937.50
Indirect Tax = 17,250 – 12,937.50
= 4,312.5
Project three
Hyrax plc. Wants to establish a business enterprise with an initial capital of birr 100,000. The
investor has 40,000 birr deposit and borrows the remaining amount from Dashin bank with an
interest rate of 10% that will be repaid after a year. You can working as a clerk in Dashen bank.
Task 3.1 calculates the cash and interest to be collected from Hyrax plc. After a year.
Answer
Task 3.1 The borrowed amount that is cash that will be collected after a year
Borrow = 100,000 - 40,000 = 60,000
Interest = 60,000 x 10% = 6000
Total amount = 66,000
PART TWO
Project one
Pyramid company acquire IT equipment service of birr 150,000 before vat. The company has
five permanent employees. The basic salary and allowance of each employees is shows below.
Name of employees Basic salary Taxable Allowance
Hailu tesfa 4000 600
Wubalem getaw 2900 500

Shiferaw tzazu 3200 300
Zeritu kebede 2500 300
Weynuwa kasa 1500 200
On 2011 the company earned revenue of birr 540,500 VAT inclusive.
Task 1.1 calculate Direct tax and indirect tax liability for the year
Answer
Task 4.1 five Employees income tax as follow:
A. Hailu tesfa taxable income =4000 + 600 = 4600
EIT = 4600 x 20% - 302.5 = 617.5
B. Wubalem taxable income = 2900 + 500 = 3400
EIT = 3400 x 20% - 302.5 = 377.50
C. Shiferaw taxable income = 3200 + 300 = 3500
EIT = 3500 x 20% -302.5 = 397.5
D. Zeritu taxable income = 2500 + 300 = 2800
EIT = 2800 x 15% - 142.5 = 277.5
E. Weynuwa taxable income = 1500 + 200 = 1700
EIT = 1700 x 15% - 142.5 = 112.5
Total EIT = 617.5 + 377.5 + 397.5 + 277.5 + 112.5 = 1782.5
Cost = 150,000 birr
Input vat = 150,000 x 15% = 22,500
Revenue = 540,500 vat inclusive
Output vat = 540,500 x15/115 = 70,500
Net revenue = 540,500 – 70,500 = 470,000
Net income = Net sales – cost
= 470,000 – 150,000 = 320,000
BPT =320,000 x 30% = 96,000
Direct TAX = BPT + EIT
= 96,000 + 1,782.5 = 97,782.5
Indirect TAX = 70,500 – 22,500 = 48,000
Project Two
The accounting records of DH PLC shows the following accounts as of January 1, 2010.
Cash 30,000 Building 70,000
Supplies 6000 A/P 12,000
Prepaid insurance 2,000 N/P 9,000
Equipment 80,000
Assume that the company wants to introduce a new product with the required capital of birr
360,000. The company applied for credit at Addis international bank Share Company in order to
finance the required capital. The bank accepted application and agreed with 12% interest semi-
annually with equal installment semi-annually for five years. The bank charged birr 2500 for
facilitating the loan. The company estimates a profit of Br 90,000.
Tasks 2.1 calculate the amount of borrowing financed by Addis international bank?
Task 2.2 Determine the total expense related to the credit?
Task 2.3 record the amount of borrowed on the book of the company?
Task 2.4 Record the final disbursement of principal and interest on the books of the company?
Tasks 2.5 calculate the estimated rate of return?
Answer
Task 2.1
From the above mentioned data we can calculate assets and liability of DH PLC.
Asset = cash + supplies + prepaid insurance + equipment +Building
A = 30,000 + 6,000 + 2,000 + 80,000 + 70,000
A = 188,000 birr
Liability = Account payable + Note payable
L = 12,000 + 9,000 = 21,000 birr
From simple accounting equation Asset = Liability + Capital
We can find the amount of capital then the formula of capital as follow
Capital = Total Asset – Total Liability
= 188,000 – 21,000 = 167,000 birr
So the amount of borrowing financed by AIB = 360,000 – 167,000 = 193,000 Birr
Task 2.2 required total expense related to the credit
Given
Borrowed amount = 193,000 birr Interest rate = 12%
Time = 5 years semi-annually = 5 x 2 = 10 service charge = 2,500
Installment paid amount = 193,000/10 = 19,300
1st installment interest = 193,000 x 12% x ½ = 11,580
Outstanding loan balance = 193,000 – 19,300 = 173,700
2nd installment interest = 173,700 x 12% x ½ = 10,422
Outstanding loan balance = 173,700 – 19,300 = 154,400
Unless time is restricted we should continue calculating in the above ways 10 times and the
total sum amount of interest (+) service charge is our answer.
Task 2.3 Cash 193,000
Note payable 193,000
Task 2.4 Note payable 193,000
Cash 193,000
Interest expenses 22,002
Cash 22,002
Task 2.5 Rate of return on investment = Estimated profit /required capital x 100
= 90,000/360,000 x 100 = 25%
Project three
The following data is given for personal income and expenditure for kaleb demelash from July
to Oct 2014. At kaleb wants to the remaining income after expenditures are covered.
Description July August September Octobe Total

Clothings 1,377 - 1,377 -
Food and other
consumption 6,120 6,480 6,120 7,038
Monthly house
rent expense 2,295 2,430 2,295 2,639
Over time work 300 - 300 345
Part time work - 1,200 - -
Salary 15,000 15,000 15,000 17,250
Transport 765 810 765 880
expense
Tuitin fee 1,530 1,620 1,530 1,759
utilities expense 306 324 306 351
personal saving
Task 3.1 Re arranges the above data and prepare the four month budget for kaleb?
Tasks 3.2 identify a business opportunity that is available in order to establish a business?
Tasks 3.3 identify the advantage of personal saving, investment and related risks on
investment?
Answer
Task 3.1
Description July August September Octobe Total

income
Salary 15,000 15,000 15,000 17,250 62,250
over time work 300 300 345 945
part time work 1,200 1,200
Total income 15,300 16,200 15,300 17,595 64,395
Fixed expenses
monthly house rent
expense 2,295 2,430 2,295 2,639 9,659
Tuition fee 1,530 1,620 1,530 1,759 6,439
Total fixed
expense 3,825 4,050 3,825 4,398 16,098
variable expense
clothings 1,377 1,377 2,754
transpor expense 765 810 765 880 3,220
food and other
consumption 6,120 6,480 6,120 7,038 25,758
utilities expenses 306 324 306 351 1,287
Total variable
expenses 8,568 7,614 8,568 6,269 33,019
Total fixed and
variable expense 12,393 11,664 12,393 12,667 49,117
Personal saving 2,907 4,536 2,907 4,928 15,278
Task 3.2 business opportunities
 Coffee house  Beauty salon  Wood work

 Barbering  Internet service  Metal work
Task 3.3 Related risk on investment
1. Political Risk 3. Economical Risk

2. Social Risk 4. Business Risk
PART THREE
Project one
IHLAS trading plc. Is a registered and licensed supplier of enjera to different universities in
Ethiopia. During the year 2010 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 source of income.
Wth zero vat rates. In the other hand the company incurred birr 300,000 general and
administrative expenses for the year. During the last month of 2010 the company with holds
birr 65,000 for employment income tax and the company is expected to pay 30% BPT.
Task 1.1 calculates direct tax liability for the year?
Task 1.2 Determine indirect tax liabilities for the year?
Answer
Task 1.1 Direct Tax
Direct tax = BPT + Employment income tax
Sales = 1,500,000 + 1,800,000 = 3,300,000
Output vat = 3,300,000 x 15/115 = 430,434.78
Net sales = 3,300,000 – 430,434.78
Net sales = 2,869,565.22
Less CGS = (1,980,000)
Gross profit = 889,565.22
Less expense = (300,000)
Net Income = 589,565.22
Add other income = 160,000
Total income before tax = 749,565.22
BPT =749,565.22 x30% =224,869.56
Net profit =524,695.65
Direct tax = BPT +EIT
= 224,869.56 +65,000 =289,869.56
Task 1.2 required indirect tax
Indirect tax =output vat – input vat
Output vat = 430,434.78
Input vat = 1,980,000 x15% =297,000
Indirect tax =430,434.78 – 297000 =133,434.78
Project two
Ato Yared is one of the employees of DDS Company who earns a weekly salary of 525 during
2012. The expenses which are incurred during the month of January are as follows.
Rent cost 250 birr Transport expense = 100 Maintenance cost =60 birr
birr
Insurance premium = 150 Food expenses
br Communication cost =50 =140 birr
birr
Due to addition commitments like saving for condominium houses he wants to increase saving
by reducing his cost with the following amount.
Rent cost 10% Communication cost 50%
Food expense 15% Maintenance cost 15%
Transport expense 30%
Task 2.1 prepare the annual budget for Yared
Task 2.2 calculate the percentage change in saving
costs for the Annual Budget for the
month of january cost of month of the Annual budet for
Item 2012 2012 January 2013 the year 2013
Rent cost
Insurance premium
Transport expense
Maintenance cost
Communication
cost
Food expense
saving
Answer
Task 2.1 prepare annual budget
costs for the Annual Budget for the Annual budget

month of cost of month of the for the year
Item January 2012 2012 January 2013 2013
income 2100 25,200 2100 25,200
Expense
rent cost 250 3000 225 2,700
insurance
premium 150 1,800 150 1,800
Transport expense 100 1,200 70 840
Maintenance cost 60 720 51 612
Communication
cost 50 600 25 300
Food expense 140 1,680 119 1,428
Total expense 750 9000 640 7680
Persona saving 1350 16200 1460 17520
Task 2.2 required percentage change in saving
Percentage change = (1,460 – 1,350)/1,350 x 100 = 8.15%
Project three
Nile engineering plc. Is a business enterprise engaged on rental of construction machineries.

The company import different kinds of construction machineries in order to rent thorough
Dashen bank. In the year 2012 Nile engineering plc. Imported roller machine at a cost of
2,500,000 birr, 60% of the cost of machine is covered by credit facility from Dashen bank. The
loan will be repaid within five years at equal installment quarterly at a cost of 12% interest rate,
the total service charge and the cost related with credit facility is 2000 for the first year of the
loan period and 2500 the second year of the loan period. Assume that the bank interest policy
is simple interest rate on outstanding loan and advances.
Task 3.1 calculate principal repayment and cost of loan related with first year loan period
Task 3.2 what is the outstanding balance of loan at the end of three year loan periods
Task 3.3 identify roles of credit to the society.
Answer
Given
Borrowed = 2,500,000 x60% = 1,500,000 service charge
Time = 5 x 4 =20 1st year =2000
Interest rate = 12% 2nd year =2500
Solution Task 3.1
Installment paid amount =1,500,000/20 =75,000
First year principal repayment =75,000 x4 =300,000
Task 3.2 Outstanding balance =75,000 x8 =600,000
PART FOUR
Project one
Belgium plc. Company paid birr 3,000 on November 2014 for vat inclusive the company also birr
1,541,000 vats inclusive. The company is paid birr 6,000 for an employment income tax for
month the administrative expenses of the plc. Is birr 15,000.
Task 1.1 calculate direct tax liability of the company
Task 1.2 calculate input vat and output vat or vat payable and vat receivable
Project two
Task 2.1 identifies at list five organizational guidelines policy procedures and practical code of
conduct?
Task 2.2 identifies the role and support within team?
Task 2.3 identifies the advantage of saving for business and individuals?
Task 2.4 how you transmit message to your colleagues?
Project three
Ato fentahun earns birr 9,500 basic salary his monthly expense is given as follow
 Closing expense is 12% of his basic salary

 Food expense is 20% of his basic salary
 Rent expense is 30% of his basic salary
 Educational expense is 5% of his basic salary
 Transportation expense is 5% of his basic salary
Task 3.1 prepare the monthly and annually budget
Ato fentahun wants to open and run a new business with a required capital of birr 80,520.
Based on his annual saving he borrowed the remaining amount from bank at 8.5% interest paid
semi-annually equal installment within 3 years
Task 3.2 what are sources of information required for opening and running a business
Tasks 3.3 calculate the total amount to be borrowed by ato fentahun?
Task 3.4 Determine the principal and interest for the 1st years?
Task 3.5 Determine the outstanding loan for end of 2nd year?
Task 3.6 what are the required information to open an account?
Task 3.7 what are the challenges you face when you are working in a bank?
Answer
Project one
Task 1.1
 Direct tax from

 Employment income tax and business income tax
 Frist compute business income tax
 Assume the co ”sales are Br 1,541,000 VAT inclusive.
 Sales during the month
 Sales = Br 1,541,000/1.15 =Br 1,340,000
 Output VAT –paid on sales
 Output VAT =1,340,000 x15% =Br 201,000
 Assume the given data VAT liability b/c output VAT input VAT
 Vat liability =output VAT –input VAT
 3,000 = 201,000 –input VAT
 Input VAT =201,000 -3,000 =198,000
 Assume the co “input VAT pad Br 198,000. What is the purchase cost of the goods?
 Purchase =Br 198,000
 0.15 purchase =198,000
 Purchase =198,000/0.15 =Br 1,320,000
 Compute business income tax (BPT)
Belgium PLC
Income statement
For the month ended November 30, 2014
Revenue
Sales 1,340,000
Less CGS (1,320,000)
Gross profit 20,000
Less administrative expense (15,000)
Net income before vat 5,000
Less BPT (5,000 x30%) (1,500)
Net profit 3,500
Direct tax =BPT +EIT
=1,500 +6,000 =7,500
Task 2.1
Organizational policy, guidelines, and procedures may include
 Organizational and customer charters

 Organizational codes of practice
 Industry policy documents
 Industry procedures manuals
 Operating manuals
Guidelines procedures, legislation and codes of practice may include
 Anti- discrimination legislation

 Electron43ic fund transfer (EFT) codes of conduct
 Financial code
 Financial transaction reports Act
 Industry codes of practice
Task 2.2 Role and objective of team
 Work activities in a team environment with enterprise or specific sector
 Limited discretion. Imitative and judgment maybe demonstrated on the job either
individually or in a team environment
 Explaining and clarifying
 Helping colleagues
 Problem solving
 Providing encouragement
 Providing feedback to a team member
 Under taking extra tasks if necessary.
Task 2.3 The advantage of saving for business and individuals
Advantage of saving for individual
 financial freedoms
 Buying power
 It is used emergency purposes
 It used for investment purposes
 Covered more money
 It used for education purposes
Advantage of saving for business
 Ti get freedom
 To get profit
 To get satisfaction
 To give job opportunity
 Increase job opportunity
Task 2.4 how you transmit message to your colleagues
 E-mail
 Interest
 Telephone
 Face –to –face
 Fax machine
Project three
Task 3.1 prepare monthly and annually budget
Ato Fentahun Ato Fentahun
Personal budget Personal budget
Monthly Annually
Estimated
Items
Items budget
income
income
Net salary 114,000
Net salary 9,500
Expenses 0
Expenses
closing expense 13,680
closing expense 1,140
Food Expense 22,800
Food Expense 1,900
Rent expense 34,200
Rent expense 2,850
Educational expense 5,700
Educational expense 475
Transport expense 5,700
Transport expense 475
Total expense 82,080
Total expense 6,840
personal saving 31,920
personal saving 2,660
Annual income = Monthly income x 12Month

Personal saving = income –Total expense
Annual expense = Monthly expense x 12Month
= 9,500 -6,480
Personal saving =Annual income–Annual
=Br 2,660 expense
= 114,000 - 82,080
= 31,920
Task 3.2 what are source of information required for opening and running a business?
 Letters
 Internet websites
 Financial trade and association magazines
 Memos plans
 Television and media
Task 3.3
Given
 Required capital Br 80,520

 Annual saving 31,920
 Borrowed 48,600
Task 3.4 the principal and interest for the first year
Given
 Interest rate =8.5%

 Time 3 x2 (b/c paid semi –annually )
Solution
Installment paid amount =48,600/6 =8,100
1st installment interest =48,600 x8.5% x =2,065.5
Outstanding balance =48,600 -8100 =40,500
2nd installment interest =40,500 x8.5% x =1,721.25
Outstanding balance =40,500 -8,100 =32,400
BELAYNEW M.
 Principal amount end of first year =8,100 x2 =16,200
 interest expense end of first year =2,065.5 +1,721.25 =3,786.75
Task 3.5 outstanding loan for end of second year
 payment of second year =8,100 x4 =Br 32,400

 outstanding loan =48,600 -32,400 =Br 16,200
Task 3.6 The required information to open an account
 Amount of initial deposit

 Other signatories to the account
 Primary account holders
 Name
 Address
 Contact details
Task 3.7 the challenges you face when you are working in a bank
 Not making enough money

 Consumer expectation from financial technology companies
 Regulatory pressure
Project one
XYZ manufacturing imported material 2,500,000.00 purchase local / br 1000,000.00 before vat for production
of glove in 2014 the local custom duty charges are birr 200,000.00 birr paid to tax authority the factory sales
30,000.00 glove at birr 150.00 each before vat including 2%sales commission the company Paid 53,000.00
administrative expense and employee income tax of 30,000.00 imported martial are exempted from vat and
withholding tax business profit tax is 30%
Task1.1 calculate net profit
Task 1.2 calculate direct and indirect tax
BELAYNEW M.
Task 1.3 identify relevant document to taxation
Project two
DL Hotel present loan proposal to Dashen bank and bank providing three credit option shames to the loan the
first option is to borrow birr 230,000.00 home mortgage to be paid with 8 year at equal installment at the rate
of 15%sami annual the second option at borrow 450,000.00 for 30 months at equal installment at rate of
13%sami annual and birr 300,000.00 for a year equal installment at rate of 12.5%semi annul respectively
The bank agreed with the company and the loan disbursed with additional service charge of birr 27,500.00
/one time borrowing cost for the three loan/
Task2.1 calculate interest expense and other service charge at the end of first year
Task2.2 calculate total loan repaid at the end of second year
Task2.3.demonstrate document required to open bank account at AIB by the company
Task 2.4 what is the advantage of credit facility
Project three
Abebe at employees of 3f furniture company earn a monthly net income of birr 15,000.00 25% of the total
income used to cover his fixed expense and the remaining income is used to cover his variable expense and
saving, saving is 15% of the variable expense for the month December 2014 the actual variable cost is 85% the
budget variable expense variable expense budget deficit
Surplus added to personal saving it is net income will be expected increased 20% February month
Task 3.1 prepare budget performance report to the month of December 2014
Task 3.2 prepare personal budget of March 2015
Task 3.3 calculate total saving at the end of March 2015 and identify the related investment opportunity
Task 3.4 identify investment risk of personal saving
Project four
Task 4.1 Identify your own role and responsibility of with in team
Task 4.2 Demonstrate your role to work effectively in the financial service sector
Task4.3 demonstrated our role in work in place meeting and discussion
BELAYNEW M.
Answer
Sales +sales commission =30,000.00*150.00=4,500,000.00
4, 500, 000, 00/1.02(sales commission)
Net sales=4, 411, 764, 71
Cost of sales=2,500,000.00+1,000,000.00+200,000.00(ERICA)=3,700,000.00
MDF manufacturing
Income statement
For the year ended of 2014
Sales--------------------------------------4,411,764.71
Cost of sales----------------------------3,700,000.00
Gross profit-----------------------------711,764.71
Administrative expense---------------53,000.00
Income before tax---------------------658,764.71
Business profit tax---------------------197,629.41
Net profit--------------------------------461,135.30
Withholding tax payable=2 %( 1,000,000.00) =20,000.00
Task 1.1
Direct tax=business profit tax +employee income tax
197,629.41+30,000.00
=227,629.41
Task 1.2
Indirect tax=vat output=4,500,000.00*0.15%
=675,000.00
Vat input=1,000,000.00*0.15%
=150,000.00
Net vat =675,000.00-150,000.00
=525,000.00
525,000.00+200,000.00
=725,000.00
BELAYNEW M.
Task 1.3
 Sales invoice
 Purchase invoice
 Payroll sheet
 Tax return statement
 Vat invoice
 Withholding invoice
 Good transit voucher
Project two
Task 2.1
1st option installment paid amount=230,000.00/16=14,375.00
Installment Interest =230,000.00*15%*0.5=17,250
Outstanding balance=230,000.00-14,375.00=215,625
2nd installment=215,625.00*15%/*1/2=16,171.87
Outstanding balance=215,625.00-14,375.00=201,250.00
Interest expense and other service charge
17,250.00+16,171.87+27,500.00
=60,921.87
2nd option installment paid amount=450,000.00/5=90,000.00
1st Installment Interest=450,000.00*13%*0.5=29,250.00
Outstanding balance=450,000.00-90.000.00=360.000.00
2nd installment interest=360,000.00*13%*1/2=23,400.00
Outstanding balance=360,000.00-90,000.00=270.000.00
Interest expense and other service charge at the end of first year
=29,250.00+23,400.00+27,500.00
BELAYNEW M.
=80,150.00
3rd option installment paid amount=300,000.00/2=150,000.00
1st Installment Interest=300,000.00*12.5%*0.5=18,750.00
Outstanding balance=300,000.00-150,000.00=150,000.00
2nd installment interest=150,000.00*12.5%*0.5=9,375.00
Outstanding balance=150,.000.00-0=0
Interest expense and other service charge=18,750.00+9,375.00+27,500.00
=55,625.00
Task 2.2
Total repaid at the end of second year
1st =14,375.00*4=57.500.00
2nd =90,000.00*4=360,000.00
3rd =150,000.00*4=300,000.00
Task 2.3
Valid and renewed licenses
Renewed and valid ID card of authorized person
Tin number
Memorandum and article of association
Letter request to operate an account that signed by designed person
Designed person signatory
BELAYNEW M.
Task 2.4
 Credit convenient you do not need to carry a lot of money with you
 You may save money because you can take advantage of sales
 It can make easier to purchase thing
 It can improve family level of living
 It can make smooth flow of economic through the economic
Project three
Fixed cost=25 %( 15,000.00)
=3,750.00
Remaining=15,000.00-3,750.00
=11,250.00
VE+SP=11,250.00
1.15VE/1.15=11,250.00/1.15
=VE=9,782.61
Saving plan=15 %( 9,782.61)
=1,467.39
Actual variable expense=85 %( 9782.61)
=8315.22
Budget surplus=9,782.61-8, 3125.39
1,464.39 saved
BELAYNEW M.
Ato abera
Budget performance
For the month ended of Dec 2014
description Budget amount Actual budget Difference
income _
Net income 15,000.00 15,000.00 _
Total income 15,000.00 15,000.00 _
Cost And expense
Fixed cost 3,750 3,750.00 _
Variable cost 9,782.61 8,315.22 1,467.39
Total cost 13,532.61 12,065.22 _
Saving plan 1,467.39 2,934.78 _
Task 3.2
His income increased by 15%from February 2014
Net income 15,000.00+20 %( 15,000.00)
=15,000.00+3,000.00
=18,000.00
Fixed cost=25 %( 18,000.00)
18,000.00-4,500.00
=13,500.00
VE+SP=13,500.00
VE+15%VE=13,500.00
1.15VE/1.15=13,500.00/1.15
VE=11,739.13
SP=15%11739.13
SP=1,760.86
BELAYNEW M.
Ato Abera
Personal budget
For the month ended March 2015
Description Amount
Income
Net income 18,000.00
Total income 18,000.00
Cost and expense
Fixed cost 4,500.00
11739.13*.85=9978.26 actual
Variable cost 11,739.13
budget
Total expense 16,239.13
9978.26+4500=14478.26
Personal saving 1760.87
18000-14478.26=3521.74
Task3.3
Total saving of March 2015
December month saving=2,934.78
January month saving=2,934.78
February month saving=3,521.72
March month saving=3521.72
Total actual saving at the end of March 2014-------12,913.00
BELAYNEW M.
Related investment opportunity
 Barbra
 Beauty salon
 Car washing service
 Internet service
 Coffee
 Wood work
 Metal work
 Retail ship
Investment related risk
 Inflation
 Bankruptcy
 Market completion
 Lack of resource
 Missing of relative legislative requirement
 Supply and demand
Task 4.1
Role and responsibility of team
 Identify individual role and responsibility with in the team environment

 Identify and organize role and responsibility of other team member
 Identify reporting relationship with in team and external to team
BELAYNEW M.
Task 4.2
Work effectively with in the financial service sector

 Identify guide line,procedure,legislation,and code of practice applying to the
financial service sector to effective every day work
 Carryout of work task in according with specific organization police guide line
and procedure
1. Communicate in the work place
 Use effective listing and speaking skill in verbal communication
 Use communication to develop and maintain positive relationship mutual trust
from appropriate personnel where necessary
2. Work safety
 Follow established safety procedure when conducting work
 Take action to eliminate work place hazard or reduced risk
 Follow organizational procedure to responding emergency incident
3. Use work place technology
 Access and use relevant information management system and database
according to organizational procedure
4. Work in a team environment
 Provide support to team member to ensure work group goal are met
 Made constrictive contribution work group goal are met
5. Develop effective work habit
 Apply time management strategy in the work duty
 Follow appropriate dress and behavior as required by the work place job role or
customer contact
Task4.3
 Attend team meeting on time
 Express own opinions clearly and those are listed to without interruption
 Conduct work place interaction in courteous manner
BELAYNEW M.
Role of national bank of Ethiopia
1. Regulating bank and other financial institution
2. Regulating payment system
3. Managing government debt
4. Setting and implementing monetary policy
Clouse customer account
1. account detail to enable transfer the remaining funds
2. Detail of possible complaints related to accounts
3. Reason for transfer or clause account memorandum of organization
Who to purchase of bonds
1. Individual
2. Companies
3. Corporative
4. Financial institution
Advantage of current account
1. There is no restriction for withdrawal of money
2. No need carry bulk amount of money for business person
3. It provide over draft facility
Dis advantage of current account
1. No interest paid on account
2. Paper work and term of condition can be time consuming
3. Losing card can limited access to funds
4. There is service charge payment
Source of document by record transaction needed
1. Treasury bill
2. Bank over draft
3. Deposit slip
4. Payment voucher
BELAYNEW M.
Source of document by loan
1. Sales invoice
2. Purchase invoice
3. Cash payment invoice
4. Deposit slip
5. Cash withdrawal slip
Service the bank provide to customer
1. Loan
2. Interest rate
3. Saving account
The bank transaction
1. Open account
2. Clouse account
3. Transfer account
4. Receive account
Advantage of checking account
1. Checking cash access and security

2. Direct deposit
3. Gain separate record
4. To protect cash economy
Dis advantage of checking account
1. Cash shortage and demand
2. Bank system may not active
3. There is rule and regulation
BELAYNEW M.
LEVEL THREE
THEORETICAL
AND
PRACTICAL
(CALCULATION)
PART
BELAYNEW M.
Project one
Preparing financial report and controlling account
1. The following trail balance of x company and as December 2014 don’t balance
because of number reason
Account description debit Credit
Cash 3750.00
Account receivable 5683.00
Supply 1457.00
Prepaid insurance 100.00
Equipment 14600.00
Note payable 13,000.00
Account payable 2960.00
X capital 10,042.00
x-drawing 3500.00
Sales 38,200.00
Wages expense 21400.00
Rent expense 4500.00
Advertising expense 200.00
Utility expense 900.00
Reason for trial balance in balance
a. The balance of cash was over stated by 1000

b. The cash receipts of 210 was posted as debit of cash of 120
c. Debit of 2000 for withdrawal by owner was posted credit to capital account
d. The balance of 1200 advertising expense was entered as 200 tin the trial
balance
BELAYNEW M.
e. A debit of 450.00to account receivable account was not posted but correctly to
subsidiary ledger account
f. A return of 310.00 of defective supplies was erroneously posted was 130.00
credit to supply
g. The balance of notes payable was over stated 3000.00
h. An insurance policy acquire at cost of 400.00 was posted as a credit to prepaid
insurance
i. Miscellanies expense with a balance of 1060.00 was omitted from trial balance
j. A credit of 710.00 in account payable is over looked during general ledger
account and subsidiary ledger reconciliation
k. A debit of 650.00 to account revivable was posted correctly but not posted to
subsidiary ledger customer account
Additional information’s for adjusted entries

a. Inventory of supplies of December 31.2014show 277.00
b. Insurance expired for the period of 2014 is 350.00
c. Doubtful account for the period is 2% the balance of account receivable
Required
Task1.1 prepare adjusted trial as of December 32.2014 in interim financial report
Task 1.2record adjusted entries for the period and determine the balanced of each account
Task1.3 prepare financial report INCOME STATEMENT, BALANCE SHEET.as December
31.2014
Project two
XYZ COMPANY prepare the following bank reconciliation for the month of March 31.2015
but the reconciliation is not correct
BELAYNEW M.
XYZ COMPANY
BANK RECOUNCILATION
MARCH 31.2015
Cash ledger balance march 31.2015 69316.66
Add: deposit in transit march 31.2015 8197.99
9200.00 notes receivable and 47 interest collected by 9245.93

bank march 31.2015 in the less 1.07 service charge
Bank service charge 10.88
Check payment of account payable drawn and paid by 825.57
bank as 91.73 recorded in the cash payment journal
917.30
Sub total
Less: outstanding checks
Ck no.413 185.22
Ck No. 419 216.25
Ck No.420 220.24
Ck No 421 426.56
NSF check 814.69
Computed bank statement balance march 31.2015 85733.74
Un reconciled balance 14320.54
Bank statement as of march 31.2015 71413.20
Required
Task 2.1 prepare corrected bank reconciliation for the month of March 31.2015
Task 2.2 recorded the necessary journalentries
Task 2.3 what are the possible step and supporting document to record theabove journal
entries
BELAYNEW M.
Project three
Zelalem trading has the following employee’s information for the month of June
2015
Name of employee Basic allowance Over time Duration of overtime
salary hours worked hours worked
Getahun dessie 3150.00 1000.00 4Hrs Public holiday
Menberu mekuanent 4320.00 1000.00 8Hrs Week end
Yesharge retta 5230.00 1000.00 6Hrs 10.00pm-6.00am
Belay takele 1890.00 800.00 9Hrs Public policy
Alhegn bantie 2230.00 800.00 10Hrs 6.00am-10.00pm
Additional information
 All employees are permanent are expected to work 40Hrs per week
 Transportation allowance is not taxable
 40%allowance for housing allowance and the remaining is for transportation
allowance
 10%basic salary deducted for credit and saving association from all
employees
 15%of basic salary is deducted from alhegn bantie to paid to RECA cost
sharing
Required
Task 3.1 prepare payroll register sheet for the month of June 30 2015
Task 3.2recorded the necessary journal entries for the month of June 2015
Task 3.3record the journal entries for the payment of payroll liability
Task 3.4 zelalem trading make salary payment to employee by bank and you assigned to
prepare bank transfer letter but the bank letter for yesharege not correct and she company
this issue for correction how can you handle this complain and resolve the problem
BELAYNEW M.
Project four
Calculate taxes .fee. And charges and foreign currency calculation
Dejene trading imported 40 units of 1300cc vehicles from china with the following
cost detail for each motor vehicle
 Invoice import price =33000USD
 Freight charges paid from Djibouti to Addis Ababa 3000.00ETB
 Insurance paid to Ethiopia insurance corporation 500.00ETB
Dejene trading sells 35 unit of vehicles to ministry of education to distribute to university
throughout the county at a unit price of 750.000ETB for each motor vehicle vat inclusive
ministry of education is tax withholding agent for Ethiopian revenue and customer
authority (withholding tax and Vat) and assume that imported motor vehicles and vat
exempted
Ministry of education has cash shortage until the end of the second fiscal year and request
commercial bank of Ethiopian credit facility of 20 million birr to be paid two year at equal
installment semiannual at an interest rate 18%(exchange rate 1USD =20.30ETB
Requested
Task 4.1 determine excise tax (30%) vat (15%)and custom duty (35%) liability payable by
dejene trading
Task 4.2 determine the amount of cash paid by Moe and record entries for the transaction by
Moe
Task 4.3 assume you are employee of CBE how to handle the credit application of ministry of
education
Task 4.4determine the loan and interest expense paid at the end of first year
BELAYNEW M.
ANSWER
Project one
a. Over state in cash-1000.00
b. Under state n cash+90.00
c. Under state in withdrawal+2000.00
d. Under state advertising expense-+1000.00
e. Under state account recivale+450.00
f. Over state in supplies-180.00
g. Over state in note recivable-3000.00
h. Under state prepaid insurance+400.00
i. Under state miscellanies expense+1060.00
j. Under state account payable+710.00
Task 1.1
X company
Adjusted trial balance
Dec.31.2014
Description Debit Credit
Cash 2842.00
Supplies 277.00
Prepaidinsurance 150.00
Office equipment 14600.00
Note payable 10000.00
Doubtful account 122.66
X capital 8042.00
BELAYNEW M.
X drawing 5500.00
Sales 38200.00
Miscellanies expense 1060.00
Supplies expense 1000.00
Insurance expense 350.00
Uncollectable account 122.66
Total 60,034.66 60,034.66
X company
Trial balance
December 31.2014
Account description debit Credit
cash 2842.00
supplies 1277.00
equipment 14600.00
Note payable 10000.00
X capital 8042.00
X drawing 5500.00
sales 38200.00
BELAYNEW M.
Total 59912.00 59912.00
Task1.2 adjusted entries

a. Supplies expense----------------1000.00
Supplies--------------------------------1000.00
b. Insurance expense--------------350.00
Prepaid insurance------------------350.00
c. Uncollectable account-------------122.66
Doubt full account---------------122.66
Task1.3
X company
Income statement
For the month ended dec.31 2014

Revenue:
Sales------------------------------------------------------------------38200.00
Less: operating expense:
Wages expense------------------------------21400.00
Rent expense----------------------------------4500.00
Advertising expense-------------------------1200.00
Utility expense----------------------------------900.00
Supplies expense-----------------------------1000.00
Miscellanies expense------------------------1060.00
Insurance expense-----------------------------350.00
BELAYNEW M.
Uncollectable account------------------------122.66
Total expense-----------------------------------------------------30532.66
Net income tax before tax------------------------------------7667.34
Statement of owner equity
Begging capital during the Dec 31.2014---------------------8042.00
Add: net income--------------------------------7667.34
Less: drawing-----------------------------------5500.00------------2167.34
Ending capital ---------------------------------------------------------10209.34
X company
Balance sheet
Dec.31.2014
Assets
2842
Cash-----------------------------------------------------------
6010.34
Account receivable---------------------------------------
277
Supplies------------------------------------------------------
150
Prepaid insurance----------------------------------------
14600
Equipment--------------------------------------------------
Total assets-------------------------------------------------
23879.34
Liability
Note payable-----------------------------------------------
10000
Account payable------------------------------------------
3670
total liability-----------------------------------------------
13670
Capital
10209.34
X capital-----------------------------------------------------
23879.34
Total liability and capital-------------------------------
BELAYNEW M.
Project two
Task 2.1 XYZ Company
Bank reconciliation
March 31.2015
Balance per Bank statement------------------71413.20

Add: deposit in transit-----------------------------8179.66
Subtotal----------------------------------------------79610.86
Less: outstanding check
Ck No—413----185.22
Ck No---419----216.25
Ck No---420---220.24
Ck No---421---426.56
Subtotal--------------1048.27
Adjusted balance--------------------------------------------------78562.59
Balance per depositor-------------------------69316.66
Add: unrecorded deposit plus interest----9245.93
Deposit error-------------------------------825.57
Subtotal-----------------------79416.23
Less: NSF check-----------------------------------------814.69
Servile charge-------------------------------------10.88
Total---------------------------------825.57
Adjusted balance-----------------------------------------------------78562.59
Task 2.2
Cash----------------------9245.93
Note receivable------------------------9200.00
Interest receivable---------------------45.93
Cash---------------------825.57
A/P---------------------------------825.57
BELAYNEW M.
A/R-------------------------814.69
Cash------------------------------------814.69
Miscellanies expense------11.95
Cash-------------------------------11.95
Task 2.3
 Comparing currently month of outstanding check deposit with current month bank
 Checking current month out sanding deposit
 Comparing outstanding check
 Collection by bank
 Deduction made by the bank
 Service charge
 Bank statement
Zelalem trading
Payroll registration sheet
June 32.2015
Transp Taxabl
Housing Credit
Name of Basic ort Over Gross Income Pension Cost
employee salary allowan
allowanc
time salary e tax fund 7%
and
sharing
Total deduct Net pay
e income saving
ce
196.
Getahun 3150 600 400 4347 446.9 220.5 315 982.4 3364.5
9 3746.87
Menberu 4320 600 400 432 5752 5152 727.9 302.4 432 1462 4289.7
294.
Yesharge 5230 600 400 6525 916.2 366.1 523 1805 4719.5
8 5924.78
265.
Belay 1890 480 320 2956 228.9 132.3 189 550.2 2405.6
8 2475.78
174.
Alhegn 2230 480 320 3204 266.1 156.1 223 335 979.7 2224.5
2 2724.22
Total 16820 2760 1840 1364 22784 20024 2586 1177.4 1682 334.5 5779.9 17,003.8
Task 3.3 Journal entries

1. Salary expense------------------------------22784
Salary payable -------------------------------------------------17,003.8
EIT payable------------------------------------------------------2,586
Pension fund payable--------------------------------------------1177.4
Credit &saving payable----------------------------------------1682
Cost sharing payable--------------------------------------------334.5
BELAYNEW M.
Company Pension (11%)
Pension =16,820 X 11% =1,850.20
Payroll expense--------------------------------------1850.20
Pension contribution payable------------------------1850.20
Task 3.3 EIT payable----------------------------------------2,586

Pension fund payable----------------------------3027.6
Credit association payable----------------------1682
Salary payable-------------------------------------17,003.8
Cost sharing payable-----------------------------334.5
Cash-----------------------------------------------------25,811.3
Task 3.4
 I will respond to complaints
 Using effective communication
 Obtain document
 Identify complaints that need referral
 Make referral to a property personal
 I will exercise judgment to resolve customer service
 Identify issue
 Negotiation for resolution
Project four
3300*20.30=669900.00
669900+3000+500=673400.00
Cost 673400*4=26936000.00
a. Custom duty=2696000.00*35/100=9427600.00
b. Excise tax=26936000+9427600*30/100=10909080.00
c. No vat
Sales 35*750.000=26250000
Vat=26250000*15/115=3423913.043
Net sales=26250000-3423913.04=22826086.96
With holding=22826086.96*2/100=456521.74
BELAYNEW M.
Task 4.2
Vehicle ---------------------------- 26,250,000

Vat pay --------------------------------------------3,423,913.04
With holding pay--------------------------------456,521.74
Cash------------------------------------------------22,369,565.22
Vat payable--------------------3,423,913.04
Withholding ---------------------456,521.74
Cash--------------------------------------------3,880,434.78
Task 4.3
 Check and verify application detail

 Gathering information
 Verification information
 I will submit assessment decision
 Conduct cert assessment
 I will maintain application record complete niceties documentation \
 Keep up to day
 Monitor movement
Task 4.4
20,000,000.00/4=5,000,000.00
1styear 20,000,000.00*18%*1/2=1.800,000.00
Instrument=20,000,000.00-5,000,000.00=150,000,000.00
2nd loan=150,000,000.00*18%*1/2=1,350,000.00
Instrument= 150,000,000.00-50,000,000.00=1,000,000.00
Loan paid 5, 000.000.00+5,000,000.00=10,000,000.00
Total Interest=1,800,000.00+1, 350.000.00=3,150, 000.00
Total principal and interest expense =13,150,000
PART TWO
Project one
Collect and safe guard cash and near cash items.
Instruction: under this task the candidate is expected to receive receipt order. Identify
The appropriate budget line item account titles as the case may be and accomplish the
Tasks listed below using the information given for each task.
Task 1.1 record expenditure and transfer to the bank account

1. Record the expenditure at notification date and check issuing day
2. Record the transfer up on the receipt of the bank credit advice
BELAYNEW M.
On HAMLE 1, 2005 the release of budget birr 285,000 working capital for the month is notified
to you institution by MOFED. It is the costumer practice of budgetary institution to receive one
bank advice at the end of each day from the bank for the daily transfer that is going to credit
your bank for check payments issued during the particular day. On the next day of notification
issued a check of birr 150,000 for purchase of fuel, 10,000 for stationary, 5,000 for tress and
120,000 for medical supplies.
Answer
1. Fuel 150,000
Stationary 10,000
Tress 5,000
Supplies 120,000
Cash 285,000
1. cash 285,000
Transfer in 285,000
Task 1.2 journalize transaction
Zebra Oil company sells its products with the term of n/302/10 FOB destination for all
Customers during the year
a) On July 30,AKEG company purchase birr 25,000 worth of oil from company
b) On August 25, ABC, an oil treatment factory purchase an oil treatment machine For birr
250,000 the insurance premium of the machine 20,000 and transportation Cost for
15,000
c) On August 6, AKEG company paid 1/4 of its purchase of July
th
d) On August 31, ABC company paid 3/4 of the purchase of August

th
e) On August 20, AKEG company paid the remaining balance of its purchase on account
f) On September 20, ABC company paid remaining balance of its purchase on account
I. AKEG Company
A. Purchase 25,000
Account payable 25,000
C. Discount =25000 x ¼ = 6,250 x 2%=125
Purchase discount 125
Cash 6,125
A. Account payable 18,750
Cash 18750
BELAYNEW M.
II. ABC Company
B. Purchase 250,000
D. Discount 250,000 x ¾ = 187,500 x 2% = 3750
Purchase discount 3750
Cash 183,750
B. Account payable 62,500
Cash 62500
III. Zebra oil Company
A. Account receivable 25,000
Sales 25,000
B. Account receivable 25000
Sales 25000
C. Sales discount 25000 x ¼ = 6250 x 2%=125
Cash 6125
Sales discount 125
Account receivable 6250
D. Sales discount = 250,000 x ¾ = 187,500 x 2% =3 750
Cash 183,750
Sales discount 3750
E. Cash 18,750
Account receivable 18,750
F. Cash 62500
Task1.3 maintains cash receivable and performs bank reconciliation
Instruction under this task given the data below the candidates is expected to perform
Where if at all do item A to G (listed below) belong to in the following bank reconciliation.
1. Balance per bank statement June 30 birrXXX
Add (1)________
Less (2)________
Correct cash balance June, 30 birr XXX
2. Balance per company books June, 30 birr XXX
Add (1)________
Less (2)________
BELAYNEW M.
Item
A. Checks Written during June that had not cleared by June, 30
B. Bank service charge for June which were not known unite the June, 30 bank
Statement arrived
C. Deposit made on June, 30 that did not reach the bank unit July1
D. Upon reviewing the company is cash receipts book after June, 30 it was discovered
that the accounting clerk had neglected to post one deposit to the cash account.
E. The bank statement reported as "NSF check" during June.
F. The bank incorrectly debited the check of another company to the bank account
during June.
G. The company account was credited for the interest earned during the month.
Solution
1. Balance per bank statement June, 30 birr XXX
Add (1) __c__
Less (2 ) __A___F___
2. Balance per company books June, 30 birr XXX
Add (1) __D___F___
Less ______B__E_____
Project two
Instruction: under this task the candidates is expected to rectify errors and discrepancies
process adjusting entries and prepare a balance sheet at the end of financial year using
information bellow.
Task2.1
XYZ International Company is completing the information processing cycle at the end of the
annual accounting period June 30, 2010. For adjusting entries must be made on this date to
update the accounts. The following accounts selected from XYZ international company's chart
of account are to be used for this purpose. They are coded on the left for easy reference.
Code Account title Code Account title
A Cash I Unearned rent

B Notes payable J Rent expense
C Interest receivable K Wages expense
D Equipment L Depreciation expense
E Accumulated depreciation M Interest expense
F Notes payable N Interest revenue
G Interest payable O Rent revenue
BELAYNEW M.
H Wages payable P Some author account not listed
Below the candidate is expected to perform route actions journalize transactions and perform
the following.
Transaction Debits Credits
Code Amount Code Amount
On June 1, 2010 the company collected birr
9000 rent revenue in advance for some ware
house space temporarily rented to a customer
(credited in full to unearned rent). The rent
1 was collected for June, July and August.
Office supply purchased during 2010
amounted to birr 5000 which was debited in
full to office supply during the year. They
earned inventory count of office supply
showed birr 600 of supplies on hand. The
beginning inventory of office supply was birr
2 800.
On May 1, 2010 a company signed a birr
50,000 interest bearing note payable. It was
for one year and specified 12percent annual
interest payable at the maturity date of the
3 note.
Answer
Transaction Debits Credits
Code Amount Code Amount
On June 1, 2010 the company collected birr
9000 rent revenue in advance for some ware
house space temporarily rented to a customer
(credited in full to unearned rent). The rent A 9,000 I 9,000
1 was collected for June, July and August.
Office supply purchased during 2010
amounted to birr 5000 which was debited in
full to office supply during the year. They
earned inventory count of office supply P 5,200 P 5,200
showed birr 600 of supplies on hand. The
BELAYNEW M.
beginning inventory of office supply was birr
2 800.
On May 1, 2010 a company signed a birr
50,000 interest bearing note payable. It was
four one year and specified 12percent annual M 1,000 B 1,000
interest payable at the maturity date of the
3 note.
Task2.2 Journal the necessary account

Description of transaction
000004 For birr 5000 is writtend as advance payment for clothing to Akaki Garment for sub
agency 01. The total at birr 7000
Checks are written to pay each of the following utility bills
Check number 005 for birr 600 for electronic conception
Check number IA000007 for birr 300 for water postal bills and
2000 birr to purchaser to buy tires for the organization car plate 02
Submits an invoice for birr 1950 and goods receiving refunds the balance of birr 50 in cash to
the cashier transaction
Tal enterprises advertise for the bidders which are capable of furniture's and instructed to
submit cash of bid security for each (assuming that the bidders are10 in number recorded the
security by the bidders)
Cash is received for amounts totaling birr 7,250 for the notes
Sets petty cash replenishment by providing invoices for birr 200 of 1910 of gasoil and birr 860
of premium and remaining balance petty cash amount birr 3000 (record the transaction
including Cash on hand birr 11 and Cash shortage birr 19)
Advertise expense for birr 14,000 the bid security bond to the bidders which did not full fill the
by accepting only three of the bidders at all after the bidding.
Answer
Task2.1
Clothing expense 7000
Cash 5000
Account payable 2000
Utility expense 1200
Cash 1200
Purchase 2000
BELAYNEW M.
Cash 2000
Purchase 1950
Cash 1950
Advertising expense 20,000
Cash 20,000
Cash 7,250
N/R 7,250
Miscellaneous expense 200
Gasoil expense 1,910
Premium 860
Cash on hand 11
Cash shortage 19
Petty cash 3,000
Returned binder 14,000
Advertisement expense 14,000
Project3
Prepare financial report and business documents
Instruction: under this task the candidate is expected to manage subsidiary account
process financial transactions and be able to prepare interim reports using the following
instructions:
Task 3.1: prepare an income statement in good from June 30, 2009 which is the first month of
operation Ignore taxes.
XYZ international company incorporated under the Ethiopia law and possesses a tax
payer registration No 00000001 and vat register certificate NO 000001. Assume on june
1, 2009 XYZ international company was started with birr 100,000 invested by the
owners as contributed capital.
On June 30 the accounting records contained the following amounts:
Account payable birr 100 Office supply 800

Account receivable birr 3,900 Rent expenses birr 1,500
Cash birr 25,000 Salaries expenses birr 2,000
Contributed capital birr 50,000 Supply expenses Birr 100
Consulting fees earned birr 10,500 Telephone expenses birr 200
Consulting fees earned birr 10,500 Office equipment birr 24,100
BELAYNEW M.
Answer
XYZ company
Income statement
For the month ended June 30, 2009
Revenue:
Consulting fees earned 10,500
Less: Operating expense
Rent expense 1,500.00
Salary expense 2,000.00
Supply expense 100.00
Telephone expense 200.00
Total expense (3,800.00)
Net income 6,700.00
Task1 prepare balance sheet for Abebe and his families company on June30, 2010 using the
following.
Accounts payable birr 4,000 Abebe capital birr 11,000
Account receivable birr 3,500 Note payable birr 2,000
Cash birr 6,000 Supplies birr 2,500
Equipment birr 7,000 Automobile birr 4,500
Salary payable birr 6,500
Abebe and his family company
Balance sheet
December 30/2010
Asset: Liability:
Cash 6,000.00 A/P 4,000.00
A/R 3,500.00 N/P 2,000.00
Supplies 2,500.00 Salary payable 6,500.00
Equipment 7,000.00 Total liability 12,500.00
Automobile 4,500.00 Capital:
Abebe capital 11,000.00
Total asset 23,500.00 Total liability and capital 23,500.00
BELAYNEW M.
PART THREE
Project
Addis international bank bole branch has five employee whose salary are paid according to the
Ethiopian calendar are following data related to the month of megabit
Name of
employee Basic salary Over time allowance
Yeshi degefe 2,500 10Hrs/4 weeks 4/holiday 2/1.25 900
Sissay tadese 5,000 6Hrs weeks 1,000
Alemu abera 10,000 8Hrs holiday 1,200
Abebe kidus 12,500 1,400
 Allowance to exempted
 All employment permanently and 40 hours to work a week
 All employees the month balance are paid day for one year for abay dam
Required
1. Prepare payroll register

2. Calculate OT,INCOME TAX, and journal entries
Project two
The information is available form Marta Company bank reconciliation as the January 31,
2014
Balance depositor account 37,820
Bank balance 65,040
Deposit transit 9,040
Less: outstanding check
 Check No 846 13,200

 Check No 873 5,000
 Check No 878 4,000
 Check No 881 2,060
Subtotal 24,260
BELAYNEW M.
NSF 20,400
Note collected by the bank 24,000
Interest income 500
Box rent expense 240
Service charge 160
Statement by depositor ck.No---9952 10,160 pay order record integrant

/teller/ 18,460.
Request
1. Prepare bank reconciliation of Marta company as at January 31, 2014

2. Prepare the necessary entries in the general journal form the account have note be
closed the voucher system is used
Project Three
Cash 87,500
Merchandise inventory 290,500
Prepaid insurance 25,380
Store supplies 16,500
Store equipment 179,000
Accumulated depreciation 50,600
Salary payable 8,200
Capital stock 360,000
Retained earnings 162,890
Divided 120,000
Income summary
BELAYNEW M.
Sales 1,890,000
Purchase 1,220,100
Sales salary expense 154,800
Depreciation expense 38,400
Store supplies expense 12,200
Miscellaneous expense 8,800
Office salary expense 79,690
Rent expense 80,000
Utilities expense 32,200
Taxes expense 17,000
General expense 7,200
Other income 7,600
Ending merchandise inventory 301,000
Expired insurance expense 12,800
Ending store supplies 4,300
Depreciation expense store equipment 38,400
Sales salary 5,600
Office salary 2,600
Required
1. Adjusted entries
2. Income statement
3. Balance sheet
BELAYNEW M.
Project four
On October 1, 2014 firm of W, X and Y decide to liquidate their partnership the partner
have capital balance of $140,000, $100,000 and 100,000 respectively the cash balance is
40,000 the book value of non-cash asset 680,000 and total liability 380,000 the partner
share income and loss and the ratio of 5:3:2
Between October 1 and October 18 the noncash asset were sold of $356,000 and the
liability were paid
Required
Assume that the liability cash to the distributed to the partner prepare the statement of
partnership liquidation
Prepare entries to record
A. The sales of the assets

B. The division of loss on the sales of assets
C. The payment of the liability
D. The destruction of cash to the partner
Answer
ABc Company
Payroll register sheet
December 31, 2014
Name of Basic Gross Taxable Income pension Abay total

employee salary Allowance Over time earning income Tax fund dam deduct Net pay
Mamo 2,500 900 324.21 3,720.21 3,320.21 361.54 175 208.33 744.87 2,975.34
selam 5,000 1,000 375 6,375 5,975 928.75 350 416.66 1,695.41 4,679.59
Yeshi 10,000 1,200 1,250 12,450 12,050 2,717.5 700 833.33 4,250.83 8,199.17
Sisay 12,500 1,400 13,900 13,500 3,225 875 1,041.66 5,141.66 8,758.34
TOTAL 30,000 4,500 1,945.21 36,445.21 34,845.21 7,232.79 2,100 2,500 11,832.77 24,612.44
BELAYNEW M.
Journal entry
1. Salary expense 36,445.21

Income tax payable 7,232.79
Pension payable 2,100
Abay dam 2,500
Salary payable 24,612.44
Company Pension Expense (11%)
2. Pension expense(11%) 3,300.00
Pension payable 3,300.00
Payment of liability
3. Income tax payable 7,232.79
Abay dam 2,500
Salary payable 24,612.44
Cash 39,745.23
Calculate the overtime Abay dam =2,500/12 =208.33

Mano basic salary =2,500/160 =156.62
Overtime =15.62 x4 x2 =124.96 Total deduct =361.54 +175+208.33=744.87

Overtime =15.62 x4 x2.5 =156.20
Net pay =3,720.21 -744.87 =2,978.34
Overtime =15.62 x2 x1.25 =39.05 GENERAL FORMULA
Total overtime =124.94 +156.20 +39.05 G/E = basic salary +allowance +overtime
=320.21
Taxable income =Gross earning -400
Gross earning=basic salary + allowance +
overtime EIT =Taxable income x Tax Rate
Gross earning =2,500 +900 +324.21 Pension =Basic salary x 7%

=3,720.21
Abay dam = Basic Salary/12
Taxable income =3,720.21 -400 =3,320.21 Total deduct =EIT +Pension +Abay dam
Income tax =3,320.21 x20% -302.5 =361.54 Net pay =Gross Earing – Total deduct
Pension fund =2,500 x7% =175
BELAYNEW M.
Project two
ABC Company
Bank reconciliation
December 31, 2014
Bank balance 65,040
Add: deposit in transit 9,040
Subtotal 74,080
Less :outstanding check
Check No 846 13,200
Check No 873 5,000
Check No 878 4,000
Check No 881 2,060
Subtotal 24,260
Adjusted bank balance 49,820
Depositor balance 37,820
Add: diopter error 8,300
Note collected 24,000
Interest income 500
Subtotal 70,620
Less: service charge 160
NSF check 20,400
Box rent expense 240
Subtotal 20,800
Adjusted depositor balance 49,820

BELAYNEW M.
Journal entry
Cash 24,500
N/R 24,000
Interest income 500
Cash 8,300
Cash 20,400
Rent expense 260
Cash 260
Service charge 240
Cash 240
Project three
Adjusting entry
Income summary 290,500
Income summary 301,000
Insurance expense 12,800
Prepaid insurance 12,800
Supplies expense 12,200
Supplies 12,200
BELAYNEW M.
Accumulated depreciation 38,400
ABC Company
Income statement
For the month ended December 31, 2014
Revenue:
Sales 1,890,000
Cost of goods sold:
Beginning merchandise inventory 290,500
Add: Purchase during the year 1,220,100
Total merchandise available 1,510,600
Less: ending merchandise inventory (301,000)
Cost of goods sold (1,209,600)
Gross profit 680,400
Less: operating expenses
Supplies expense 12,200
Miscellaneous expense 8,800
BELAYNEW M.
Rent expense 80,000
Tax expense 17,000
Utility expense 32,200
General expense 7,200
Total expense (500,890)
Income after opening expense 179,510
Plus other income 7,600
Net income 187,110
Ending retained earning =beginning retained earning +net income –divided
=162,890 +187,110 -120,000 =230,000
ABC Company
Balance sheet
December 31, 2014
Asset Liability
Cash 87,500 Account payable

89,480
A/R 192,300 Salary payable

8,200
Merchandise inventory 301,000 Total liability

97,680
Prepaid insurance 12,580 Capital
Supplies 4,300 Capital stock

360,000
BELAYNEW M.
Total current asset 597,680 Ending retained earning
230,000
NON current asset Total capital

590,000
Less Accumulated depreciation = (89,000)
Total asset 687,680 Total liability + total capital

687,680
Project four
ABC Company
Statement of partnership liquidation
December 31, 2014
Non cash Y-
Description cash assets liablity W -capital X -capital capital
Balance 40,000 680,000 380,000 140,000 100,000 100,000
Realization of non -cash
assets 356,000 (680,000) (162,000) (97,200) (64,800)
capital after realization NCA 396,000 0 380,000 (22,000) 2,800 35,200
pay cash by partner 22,000 22,000
capital after pay cash 418,000 0 380,000 0 2,800 35,200
payment of liablity (380,000) - (380,000) - - -
capital after pay of liablity 38,000 - 0 2,800 35,200
final pay of cash to partner (38,000) - - - -2,800 -35,200
Final balance 0 0 0 0 0 0
A. Realization of non –cash assets
Non cash 680,000
Cash sales of NCA= (356,000)
Loss = 324,000
BELAYNEW M.
Journal entry
Cash 356,000
Loss 324,000
NCA 680,000
Payment of cash by partner W
Cash 22,000
W –capital 22,000
B. Division of loss
W –capital =324,000 x5/10 =162,000
X –capital =324,000 x3/10 =97,200
Y –capital =324,000 x2/10 =64,800
Journal entry
W –capital 162,000
X –capital 97,200
Y –capital 64,800
Loss on realization 324,000
A. Payment of liability
A/p 380,000
Cash 380,000
B. Final payment of cash to partner
X –capital 2,800
Y –capital 35,200
Cash 38,000
BELAYNEW M.
PART FOUR
Project one
Name of Basic
employee salary Over time
Zelalem 600 150
Fikadu 1,000 500
Soliana 3,000 300
Ayalew 5,000 200
 The company paid allowance 10% of basic salary for each employee
 All employee allowance is taxable
 Credit association is 5% of basic salary
 Pension contribution is 11% from employer and 7% from employees
 All employee are permanent
 Bank service charge of each employee is 10 birr paid by the employer
Required
Task 1.1 prepare payroll register sheet
Task 1.2 Record the journal entry for the month of June 2015
Task 1.3 Record the journal entry for the payment of payroll liability
Project two prepare income statement
Ethio plastic is a manufacturing company produces plastic materials for the month of
December 31, 2014
Gross sales 3,210,000
Beginning inventory 258,000
Depreciation 78,000
Ending inventory 248,000
Interest expense 64,000
BELAYNEW M.
Lease expense 52,000
Management salary 240,000
Material purchase 2,425,000
R & D expenditure 35,000
Repair and maintenance 22,000
Return and allowance 48,000
Required
Task 2.1 calculate tax assume that the company is expected to pay 30% of profit
Task 2.2 Prepare income statement for the year
Project three
List of income statement accounts with their respective values for TIKUR ABAY
construction Share Company for the year ended sene 30, 2006
Sales 200,000
Sales return and allowance 2,000
Sales discount 1,500
Cost of goods sold 110,600
Operating expenses 26,100
Interest expenses 3,000
Operating expenses includes entertainment and uncollectible account expenses birr 6,000
&2,700 respectively. Assume that the company is expected to pay 30% profit tax. The board
director of the company notice that it is decided to distribute 60% of net income after tax will
be distributed to the shareholders are divided
Tasks 1.1 prepare income statement for tax purpose for the year.
Task 1.2 calculate profit tax liability
Task 1.3 Calculate divided tax liability of the year
BELAYNEW M.
Task 1.4 calculate net divided pay out to the shareholders
Project three
1. Balance per bank statement dated march 31, 2015 is birr 4,204
2. Balance of the cash account on the company book of march 31, 2015 is birr 2,855
3. Birr 500 receipts of march 31 did not appear in the bank statement
4. The following check issued by ADA reach and development PLC did not appear in the
march bank statement
 Check No 20 300
 Check No 21 250
 Check No 22 238
5. A Note of birr 1,200 and interest of birr 25 were collected by bank for ADA reach and
development plc. And included with the bank statement of credit memo
6. Included with the bank statement is birr 150 debit memo for NSF check
7. Service and collection charge for the month were birr 50
8. Cash payment to a supplier on account of birr 148 was erroneously recorded by the
depositor birr 184
Required
Task 3.1 prepare a bank realization of March 31, 2015
Task 3.2 prepare their Necessary journal entry
Project four
Habtamu, Soliana and Hanan partner who that income and loss in the ratio of 5, 3 and 2
decided liquidated the partnership as of march 31, 2015. After he accounts were closed on
March 31, 2015 the following has prepare
Cash Br 10,000
Non cash Assets Br 100,000
Liabilities Br 26,000
Habtamu capital Br 25,000
Soliana capital Br 30,000
Hanan capital Br 29,000
BELAYNEW M.
Based on those facts accounting for liquidation of partnership assuming the following
assumption
A. Non cash asset were sold for Br 70,000
Required
A. Prepare statement of partnership liquidation March 32, 2015

B. Pass the necessary journal entries for partnership liquidation by their assumption
Project one Answer
Task 1.1
ABC company
Payroll sheet register
For the month of June 2015
Earning Dedication
Name of Basic Over Gross Income Credit Total

employee salary time Allowance earning tax pension association deduction Net pay
Zelalem 600 150 60 810 21 42 30 93 717
Fikade 1,000 500 100 1600 100 70 50 220 1380
Soliana 3,000 300 300 3600 300 210 150 660 2940
Ayana 5,000 200 500 5700 510 350 250 1110 4590
Total 9,600 1,150 960 11,710 931 672 480 2,083 9,627
Allowance
Zelalem =600 x10% Pension Ayana =5000 x5% =250
=60 Zelalem =600 x7% =42 Bank service charge

Fikade =1000 x10% Fikade =1,000 x7% =70 Zelalem =10
=100 Soliana =3000 x7% =210 Fikade =10
Soliana =3000 x10% Ayana =5,000 x7% =350 Soliana =10
=300
Credit association Ayana =10
Ayana =5000 x10%
Zelalem =600 x5% =30 Total =40
500
Fikade =1000 x5% =50
Soliana =3000 x5% =150
BELAYNEW M.
Task 1.2 Record journal entry
Salary expense 11,710
EIT payable 931
Pension payable 672
Credit association payable 480
Payroll tax expense 1096
Pension payable for employer 1056
Bank service charge payable 40
Task 1.3 Payment of liability
EIT payable 931
Credit association payable 480
Bank service charge payable 40
Cash 12,608
Project two Task 2.1
Net sales =3,210,000 -48,000 =3,162,000
Cost of goods sold = (258,000 +2,425,000) -248,000 =2,435,000
Gross profit =3,162,000 -2,435,000 =727,000
Total expense =68,000 +78,000 +64,000 +52,000 +240,000 +35,000 +22,000 =559,000
Net income =727,000 – 559,000 =168,000
BPT =268,000 x30% =50,400
Net profit =168,000 – 50,400 =117,600
BELAYNEW M.
Task 2.2 prepare income statement
Ethio plastic
Income statement
For the year ended December 31, 2014
Net sales 3,162,000
Less:- Cost of goods sold (2,435,000)
Gross profit 727,000
Less:- operating expense
Interest expense 64,000
Management salary expense 240,000
Lease expense 52,000
R & D expenditure 35,000
Repair and maintenance expense 22,000
Total expense 559,000
Net income 168,000
Project three Task 3.1
Reach and development PLC
Bank reconciliation
March 31, 2015
Balance per bank 4,204
Add:- deposit in transit 500
Subtotal 4,704
BELAYNEW M.
Less:- Outstanding check
Check No 20 300
Check No 21 250
Check No 22 238
Subtotal 788
Adjusted bank balance 3,916
Balance per depositor 2,855
Add:- N/R 1,200
Interest income 25
Depositor error 36
Subtotal 4,116
Less :-NSF check 150
Service charge 50
Subtotal 200
Adjusted depositor balance 3,916
Task 3.2 Journal entry
Cash 1,225
N/R 1,200
Interest income 25
Cash 36
A/P 36
A/R 150
Cash 150
Miscellaneous expense 50
Cash 50
BELAYNEW M.
Project four Habtamu, Soliyana and Hanan
Statement of partnership liquidation
For period march 31, 2015
Asset Capital
Item Cash Non cash asset liablities Habtamu Soliyana Hanan
Balace Before realization 10,000 100,000 26,000 25,000 30,000 29,000
Sales of assets and division of
loss 70,000 (100,000) - (15,000) (9,000) (6,000)
Balace after realization 80,000 0 26,000 10,000 21,000 23,000
Payment of Liablity -26,000 - -26,000 - - -
Balace after payment of liablity 54,000 0 0 10,000 21,000 23,000
distrbution of cash to partner (54,000) - - (10,000) (21,000) (23,000)
Final Balance 0 0 0 0 0 0
Journal entry
Sales of assets Journal entry
Cash 70,000 Habtamu capital 15,000
Loss of realization 30,000 Soliyana capital 9,000
Non cash asset 100,000 Hanan capital 6,000
Division of loss Loss of realization 30,000
Habtamu =30,000 x5/10 =15,000 Distribution for cash to partner
Soliyana =30,000 x3/10 =9,000 Habtamu capital 10,000
Hanan = 30,000 x2/10 =6,000 Soliyana capital 21,000
Payment of liability Hanan capital 23,000
A/P 26,000 Cash 54,000
Cash 26,000
BELAYNEW M.
THEORETICAL PART
Level three coc assessments Choose the best answer
1. In the business transaction the first accurate can be record in book of
a. Journal
b. Payment journal
c. Ledger
d. Receipt journal
2. Properties owned by business
a. Assets
b. Capital
c. Liability
d. revenue
3. assume that you have 500 euro in your hand what in the equivalent amount
USD if USD is br18 for euro 24br
a. 666.66/USD
b. 500USD
c. 5833.33/USD
d. 120,00USD
4. Post-closing trail balance may including which one of the sales account
a. Sales
b. Account receivable
c. Salary expense
d. Interest expense
5. Good and document are examined in accordance with legislative requirement
plus if needs bank parents base on CBE directive this
a. To have principle legislative certificates
b. Related to import and export activity
c. Regulation declaration of tax
d. Internal control system
6. Payment of cash for settlement of purchase on account would be record
a. Cash debit
b. a/p credit
c. a/p debit
d. a/r credit
7. The properties of owed by business
A. Account payable
BELAYNEW M.
B. Revenue
C. Liability
D. income summery
8. Salary expense has credit balance of br 10.000 on hamlet beginning of
period reversing entries posted but before any transaction occurred the
balance representation
a. Assets
b. Revenue
c. Liability
d. expense
9. maturity value 90 day interest rate 12% principal amount 100,000
a. 9000
b. 5000
c. 103000
d. 3500
10. Before adjusting entry account receivable has a balance of br 400000
allowance for doubtful account has a br 5000 if statement uncollectable
account br is the uncollected
a. 15000
b. 5000
c. 12000
d. 400000
11. One of the following not closed the ends of the accounting fiscal price
a. Expense
b. Income summery
c. Revenue
d. liability
12. Minor amount of money to replenish the company activity
a. Change fund
b. Petty cash
c. Capital receipts journal
d. Cash receipts journal
13. Sales or purchase is recorded in which financial report
a. income statement
b. trial balance
c. balance sheet
d. cash flow
BELAYNEW M.
14. Controlling account that summarize the balance of each customer is
a. Account payable
b. Merchandise inventory
c. Account receivable
d. Income summery
15. Which one of the following does not need journal
a. Not collected and back service charge
b. Non-sufficient fund
c. Deposit in transit and outstanding check
d. Interest revenue earned
16. Which one is related
a. Bank draft
b. Cop payment
c. Term /ican
d. Bank statement
17. Secondary record
a. Ledger
b. General journal
c. Trial balance
d. Balance sheet
18. The income statement debit balance was br 65000 credit balance 90000 and
owner with drawl were br 20000 the amount of net income or net loss was
a. 20000
b. 15000
c. 5000
d. 10000
19. The adjustment of unearned revenue is result will show
a. Over statement
b. Over statement of liability
c. Under statement of liability
d. Under statement of revenue
BELAYNEW M.
Matching
1. Term of loan ---Q A. liability
2. Accrued revenue ---A B. small team
3. Manual agency--- L C. . secondary book
4. Indirect tax---P D. used to keep accurate revenue
5. Ledger---C data record
6. Batch--- M E. account receivable
7. Cheque/cop/--G F. used o improve business
8. System control---O performance
9. Letter of credit--- H G. . payment instrument
10. Swat analysis--- F H. . customer is to be credited
11. Supervision--- B I. VISA
12. Maintain quality document--- D J. plan assets
13. Double taxation -- K K. corporation
14. Credit card --- I L. partnerships
15. Cash --- N M. group of journal
N. most of liquid assets
O. . sales tax
P. help of protect fraud or
corruption
Q. fixed payment period
BELAYNEW M.
LEVEL FOUR
THEORETICAL
AND
PRACTICAL
(CALCULATION)
PART
103
PART ONE
XYZ Company
For the month April 2013
Name of Basic Over Gross Income Pension Total Net sign

employee salary time salary tax deduction pay
tirusew 2067.5
Nigatu 2379
getasew 943.5
Yemairam 155.4
nistuh
total
1. Tirusew and Nigatu have paid the same income tax for the month
2. Tirusew pension contribution is 22.64% of her income tax
3. The total employee and employer pension contribution of nistuh is equal to that Yemairam pension
contributor
4. Getasew pension contribution is 28.74% of his income tax
Required
a. analyze in the in employer payroll registration sheet give the above
b. it salary paid in may month journal
a. Salary and other benefit
b. Payment of liability
c. Payroll tax of company pension contribution
104
Exercise 2
Preparing financial report
Given
The accounts in the ledger of A.A Company at end of the year 2014 show the following
Cash
Fees receivable
Prepaid insurance 3,725.00
Supplies 675.00
Prepaid advertising 1,000.00
Salary payable
UN earned rent
Income summary
Fees earned 62,250.00
Salary expenses 41,700.00
Advertising expenses 10,340.00
Supply expenses
Insurance expenses
Rent income 9,100.00
1. Unbilled fees on December 7,750.00

2. Insurance expired Birr 2,100.00
3. Supply inventory Birr 190.00
4. The payment of Birr 1,000.00 advertising in Ethiopian Herald newspaper 75% has been
used.
5. Salary accrued Birr 1,140.00
6. Rent collection in advance that will not be earned is Birr 700.00
Required
1) Prepare necessary adjusting entries
2) Prepare income statement and balace sheet
105
Exercise 3
During the month of February the following transactions occurred to produce 3 products.
1. Material purchase on account

Sand 500.00
Steel 790.00
Chemical 4500.00
2. Direct material issued and direct labor cost
Direct material issued direct labor cost
Job – 1 227.50 160.00
Job – 2 780.00 210.00
Job – 3 3900.00 175.00
3. Factor over head is 60% of direct labor cost
4. Finished goods sold Birr 7200.00
Required
1. Record journal entries

2. Calculate cost of each job
3. Calculate gross profit
Exercise 4
Given
1. Direct material purchase Birr 25,000.00

2. Direct material issued Birr 21,000.00
3. Direct labor cost Birr 35,000.00
Inventory
1. Beginning inventory finished goods Birr 16,000.00

2. Beginning inventory row material Birr 13,000.00
3. Ending finished goods inventory Birr 18,000.00
4. Factor over head is 80% of direct labor cost
5. Sales is Birr 117,000.00
106
Required
Exercise 5
Prepare operational budget
Kaliti steel factory manufactures two products A & B desired inventory
1. Calculate cost of goods manufactured

2. Calculate cost of goods sold
3. Calculate gross profit
Product A product B
Desired inventory ending fot each month 20,000 10,000
Estimated beginning inventory for each month 21,000 9,000
Selling price per unit 50 70
Estimated sales unit
January February march Total
Aria 1 A 6500.00 6900.00 6600.00 20,000
Aria 1 B 1950.00 1500.00 1500.00 4950
Aria 2 A 2500.00 3000.00 4500.00 10,000

Aria 2 B 500.00 600.00 1500.00 2600
For the production of A&B kality steel factory uses the following raw materials
Material unit cost A B
Sand 0.50 20 kg 15 kg per unit
Steel 1 10kg 15 kg per unit
Chemical 5 10Lt 15 kg per unit
Required
1. Prepare sales for the current quarter

2. Prepare production budget for the current quarter
107
3. Prepare row material purchase budget for the current quarter
Exercise 6
VAT
The following were selected from among the translations completed by VAT, a VAT register
merchandising firm during January of the current year.
1. Received cash from sales of furniture Birr 250,000.00

2. Paid entertainment expenses Birr 5,000.00
3. Purchase raw materials for Birr 49,000.00 for cash
4. Paid utility expense Birr 20,000.00
5. Sales of furniture on account Birr 80,000.00
6. Paid salary expenses Birr 28,000.00
7. Paid supply expenses Birr 20,000.00
8. Doubtful account expenses Birr 8000.00
Required
1. Record the necessary journal entries related to the transaction

2. Determine amount of VAT payable receivable from to ERCA
3. Prepare income statement for the month of January for Tax purpose & calculate profit
Tax liability (Business profit Tax 30%)
Exercise 7
Inventory
Fax Manufacturing has the following information in related to commodity D2 July
Inventory
July 1 15 units @30
July 4 sales 5 units @35
July 10 purchase 10 units @32
108
July 30 purchase 10 units @ 33
Required
1. If the company used perpetual inventory system & FIFO costing method
A. Determine cost of goods sold
B. Determine ending inventory on hand at the end of year
C. Determine amount of gross profit
2. If the company uses periodic inventory system &LIFO costing method.
A. Determine cost of goods sold
B. Determine ending inventory on hand at end of year
C. Determine amount of gross profit
Exercise 8
Bank reconciliation
Printer Corporation employs the voucher system in controlling expenditures and

disbursements. All cash receipts are deposited cash Wednesday and Friday in a night
depository after banking hours. The data required to reconcile the bank statement as of April
30 have been abstracted from various documents and records and are reproduced as follow.
To facilitate identification the sources of the data are printed in capital letters.
CASH IN BANK ACCOUNT
Balance as of April 1 $7,817.40
CASH RECEIPTS JOURNAL
Total of cash in bank debit column for month of April 7829.58
DUPLICATE DEPOSIT TICKETS:
Data and amount of each deposit in April
Data Amount Data Amount Data Amount
April 1 $848.63 April 10 $971.71 April 22 $897.34
April 3 914.04 April 15 957.85 April 24 942.71
109
CHECK REGISTER
Number and amount of each check issued in April
Check No Amount check No Amount check No Amount
740 $287.50 747 void 754 $249.75

741 555.15 748 $490.90 755 172.75
742 501.90 749 640.13 756 113.95
743 671.30 750 376.77 757 907.95
744 506.88 751 299.37 758 359.60
745 117.25 752 537.01 759 601.50
746 298.66 753 380.95 760 486.39
Total amount of check issued in April $8555.66

Deposits and other credits 10,652.77
Checks and other debits (8,232.21)
Data Amount Data Amount Data Amount

April 1 $690.25 April 9 $840.50 April 18 $948.74
CHECKS ACCOMPANYING APRIL BANK STATEMENT

Number and amount of each check rearranged in numerical sequence:
Check No Amount Check No Amount Check No Amount
731 $162.15 744 $506.88 751 $299.37
738 251.40 745 117.25 752 537.01
739 60.55 746 286.66 753 380.95
740 287.50 748 490.90 754 249.75
741 555.15 749 640.13 756 113.95
742 501.90 750 376.77 757 907.95
743 671.30 760 486.39
BANK MEMORANDUMS ACCOMPANYING APRIL BANK STATEMENT:

Data description and amount of each memorandum
Data Description Amount
April 4 bank credit memo for note collected:
Principal $2500.00
Interest 125.00
April 24 Bank debit memo for check returned because of:
Insufficient funds 311.80
110
April 30 Bank debit memo for service charges 24.50
BANK RECONCILIATION FOR PRECEDING MONTH
Printer Corporation
Bank reconciliation
March 31, 2015
Balance per bank statement $7,947.20
Add:-deposit for March 31, not recorded by bank 690.25
Subtotal $8,637.40
Deduct outstanding checks:
No 731 $162.15
736 345.95
738 251.40
739 60.55
Subtotal $820.05
Adjusted bank balance $7,817.40
Balance per depositors records $7,832.50
Deduct service charges 15.10
Adjusted depository balance 7,817.40
Instructions:
1. Prepare bank reconciliation as of April 30.if errors in recording deposits or checks
are discovered assume that the errors were made by the company. Assume that all
deposits are from cash sales. All checks are in payment of vouchers
2. Record the necessary entries in general journal form. The accounts have not been
closed.
111
ANSWER
Answer LEVEL 4 COC TEST
XYZ Company
For the month April 2013
Name of Basic Over Gross Income Pension Total Net pay

employee salary time salary tax deduction
Tirusew 7,800 _ 7,800 2067.5 468.50 2,536.00 5,264.00
Nigatu 5,421 2379 7,800 2067.5 325,26 2,392.76 5,407.24
getasew 4,520 _ 4,520 943.5 271.20 1,214.70 3,305.30
Yemairam 2,590 _ 2,590 412.5 155.40 567.9 2,022.10
Nistuh 1,110 _ 1,110 119 66.60 185.60 924.40
Total 21,441 2,379 23,820 5,610 1,286.96 6,896.96 16,923.04
Journal entry
Salary Expense 23,820.00
EIT Payable 5,610.00
Pension contributions pay 1,286.96
Salaries pay 16,923.04
EIT Pay 5,610
Pension contributions pay 1,286.96
Salary Pay 16,923.04
Cash 23,820
112
Company pension contribution
Pension = 21,441 x8% = 1,715.28
Journal entry
Pension contribution expense 1,715.28
Pension payable 1,715.28
Pension contribution payable 1,715.28
Cash 1,715.28
Exercise Two
Adjusting entry
1. Fees receivable 7,750

Fees earned 7,750
2. insurance expense 2,100
3. supplies expense 485
Supplies 485
4. advertising expense 750
Prepaid advertising 750
5. Salary expense 1,140
6. Cash 700
Unearned fees 700
A.A Company
Income statement
For the year ended of December 31, 2014
Revenue
Fees earned 70,000
Less:- operating expenses
Salary expenses 42,840
113
Advertising expenses 11,090
Supplies expenses 485
Insurance expenses 2,100
Total expenses 56,515
Net income after operating expense 13,485
Add: rent income 9,100
Total income 22,855
A.A Company
Balance sheet
December 31, 2014
Asset Liability
Cash 700 Salary payable 1,140
F/R 7,750 Unearned rent 700
Prepaid insurance 1,625 Total liability 1,840
Supplies 190 Capital
Prepaid Advertising 250 A.A Capital 8,675
Total Asset 10,515 Total liability & capital 10,515
Exercise three
Journal entry
1. Row Material 5,790 Direct Labor cost
A/p 5,790 1. Work in process 545

Salary payable 545
Direct material issued
Factor over head
1. Work in process 4,907.5
1. Work in process 327
Row material 4,907.5
Row material 327
114
2. Cost of each job
Direct Direct Factor

material labor over
item issued cost head Total
Job - 1 227.5 160 96 483.5
Job - 2 780 210 126 1116
Job - 3 3900 175 105 4180
Total 4907.5 545 327 5779.5
3. Gross profit =sales – cost of each job

= 7,200 – 5,779.50
= 1,420.50
Exercise four
1. Cost of goods manufactured = Direct material issued + Direct labor cost + Factor over
head
= 21,000 + 35,000 + 28,000
= 84,000
2. Cost of goods sold = CGM + beginning inventory finished good – Ending inventory
finished good
= 84,000 + 16,000 – 18,000
= 82,000
3. Gross profit = sales – CGS
= 117,000 – 82,000
= 35,000
115
Exercise five
Kality steel factory
Sales budget
JANUARY FEBRUARY MARCH

Sells Sells Sells
Estimated Price Per Estimated Price Estimated Price
ITEMS sales unit Unit Total sales unit Per Unit Total sales unit Per Unit Total
PRO A, Aria 1 6,500 50 325000 6,900 50 345000 6,600 50 330000
Aria 2 2,500 50 125000 3,000 50 150000 4,500 50 225000
Total 9,000 450,000 9,900 495,000 11,100 555000
PRO B, Aria 1 1,950 70 136500 1,500 70 105000 1,500 70 105000
Aria 2 500 70 35000 600 70 42000 1,500 70 105000
Total 2,450 171,500 2,100 147,000 3,000 210,000
Total sales budget
Product A = 450,000 + 495,000 + 555,000 = 1,500,000
Product B = 171,500 + 147,000 + 210,000 = 528,500
= 2,028,500
Production budget
Quarterly
JANUARY FEBRUARY MARCH

ITEMS PRO, A PRO, B Total PRO, A PRO, B Total PRO, A PRO, B Total
Estimate sales
unit 9,000 2,450 11,450 9,900 2,100 12,000 11,100 3,000 14,100
Add: Ending
inventory 20,000 10,000 30,000 20,000 10,000 30,000 20,000 10,000 30,000
Total 29,000 12,450 41,450 29,900 12,100 42,000 31,100 13,000 44,100
Less: beginning
inventory 21,000 9,000 30,000 21,000 9,000 30,000 21,000 9,000 30,000
Total 8,000 3,450 11,450 8,900 3,100 12,000 10,100 4,000 14,100
116
TOTAL Production budget =11,450 + 12,000 + 14,100
= 37,550

Row material budget
Quarterly
JANUARY
ITEM SAND STEEL CHEMICAL TOTAL

PRODUCT, A 160,000 80,000 80,000 320,000
UNIT COST 0.5 1 5
TOTAL 80,000 80,000 400,000 560,000
PRODUCT, B 51,750 51,750 51,750 155,250
UNIT COST 0.5 1 5
TOTAL 25,875 51,750 25,8750 336,375
FEBRUARY

PRODUCT, A 178,000 89,000 89,000 356,000
UNIT COST 0.5 1 5
TOTAL 89000 89000 445000 623,000
PRODUCT, B 46,500 46,500 46,500 139,500
UNIT COST 0.5 1 5
TOTAL 23,250 46,500 23,2500 302,250
MARCH

PRODUCT, A 202,000 101,000 101,000 404,000
UNIT COST 0.5 1 5
TOTAL 101,000 101,000 505,000 707,000
PRODUCT, B 60,000 60,000 60,000 180,000
UNIT COST 0.5 1 5
TOTAL 30,000 60,000 30,0000 390,000
117
Exercise six
Task 6.1 VAT
1. Cash 250,000
VAT Payable 32,608.70
Sales 217,391.30
2. Entertainment expense 5,000
Cash 5,000
3. Purchase 42,608.70
VAT receivable 6,391.30
Cash 49,000
4. Utility expenses 20,000
Cash 20,000
5. A/R 80,000
VAT Payable 10,434.78
Sales 69,565.22
6. Salary expenses 28,000
Cash 28,000
7. Supply expenses 20,000
Cash 20,000
8. Doubt full acc.expe 8,000

A/R 8,000
Task 6.2 Output VAT = 32,608.70 + 10,434.78 = 43,043.48
Input VAT = 6,391.30
VAT Payable = output VAT – Input VAT
= 43,043.48 – 6,391.30
= 36,652.18
Task 6.3 ABC Company
Income statement
NOV 05, 2010
118
Sales 286,956.52
Less: operating expenses
Utility expenses 20,000
Salary expenses 28,000
Supply expenses 20,000
Total expenses (68,000)
Net income before TAX 218,956.52
BPT = 218,956.52*30% = (65,686.96)
Net profit 153,269.56
EXERCISE SEVEN
Period inventory
FIFO Costing Method
Purchase Cost of goods sold INVENTORY

DATE Items Quantity Cost Total cost Quantity cost Total cost Quantity Cost Total cost
July,
1 inventory 15 30 450
4 Sales 5 30 150 10 30 300
10 30 300
10 Purchase 10 32 320 10 32 320
10 30 300
14 Sales 2 32 64 8 32 256
21 Sales 3 32 96 5 32 160
5 32 160
30 Purchase 10 33 330 10 33 330
TOTAL 20 Unit 650 20 Unit 610 15 Unit 490
A. Cost of goods sold = July, 4 = 5 * 30 =150 Sales = July 4 = 5 *35 = 175

14 = 10 * 30 = 300 21= 12 *39 = 468
14 = 2 * 32 = 64 21 = 3 * 40 = 120
21 = 3 * 32 = 96 = 20 Unit = 763
= 20 unit = 610
119
B. Ending inventory = July 30 = 5 * 32 = 160
30 = 10 * 33 = 330
= 15 Unit = 490
C. Gross profit = sales – CGS
= 763 – 610
= 153
LIFO COSTING METHOD
Period inventory
A. Cost of goods sold = July, 4 = 5 * 30 = 150

14 = 10 * 32 = 320
14 = 2 * 30 = 60
21 = 3 *30 = 90
= 20 Unit = 620
B. Ending inventory = July, 30 = 10 * 33 = 330
1 = 5 * 30 = 150
= 15 Unit = 480
C. Gross profit = sales – CGS

= 763 – 620
= 143
EXERCISE EIGHT
Printer Corporation
Bank reconciliation
April 30, 2010
Balance per Bank $10,367.76
Add: deposit transit 510.06
Sub Total 10,877.82
Less: Outstanding Check
Check no 736 $345.95
755 172.75
758 359.60
120
759 601.50
Sub Total 1,479.80
Adjusting Bank balance 9,398.02
Balance Per Depository $7,091.32
Add: N/R 2,500.00
Interest Income 125.00
Depositor error 18.00
Sub Total 9,734.32
Less: NSF Check 311.80
Service charge 24.50
Sub Total 336.30
Adjusting depository balance 9,398.02
JOURNAL ENTRY
Cash 2,625
N/R 2,500
Interest Income 125
Cash 18
A/P 18
A/R 311.80
Cash 311.80
Cash 24.50
121
PART TWO
Unit of competence covered
Process payroll
Tectalk Company engaged with IT activities and has four permanent employees who have
different profession.
WORK OUT
No NAME OF Basic salary Over time hr Over time Credit Allowance

EMPLOYEE worked association
1 Melaku 5000 8 Week 1750 500
Tilahun
2 Olga Jigsa 650 0 150 100
3 Giday Gere 2350 4 Public holiday 0 230
4 Belachew 3600 12 Public holiday 0 400
Tadese
Total 116OO
 Allowance is not taxable for employment

 Employees are regular
 Employee worked 40 hours per week
 All employee and employer are expected to contribute 7%and 11%to pension
1. Prepare payroll document register sheet as of April 30
2. If salary is paid in may (next month) journalize
A. Salary and other benefit
B. Payment of liability
C. Payroll tax contribution of pension by company
Project two
Unit of competence covered
Produce job costing information
3F - manufacturer’s three products A, B and C
Desired inventory
Budget
Production A production B production C
Beginning inventory—50,000 70,000 65,000
Ending inventory-------51,000 45,000 41,000
Unit price-----------------30 35 40
122
Sales units
Area1 area2 area 3

A. ------------------------30,000 30,000 60,000
B. ------------------------20,000 50,000 70,000
C. ------------------------26,000 56,000 82,000
Required
1. Determine sales budget
2. Determine production budget
Project three
Direct material purchase ------25,000
Direct material used--------------21,000
Direct labor cost------------------35,000
Factory overhead cost is 80%direct labor
Sales ---------------------------------------117,000
Inventory
Beginning inventor finished goods-------------------16,000
Beginning inventory row material--------------------13,000
Ending inventory finished goods-----------------------18,000
Requested
1. Calculate cost of goods manufacturing
2. Calculate cost of goods sold
3. calculate gross profit
Project four
Bank reconciliation
Cash in bank account for XYZ company at May 31 of the current year indicated a balance
of birr 13.215.80 the bank statement of depositor is 19,513.90 of May 31 2014
Check of outstanding 7070.10
Depositor of birr 3915.20 too late to appear to bank statement the bank had collected
3120 on behalf of customer note check od birr 69 returned recorded error 96 check
down 42 had been Errol charged as birr 24 and service charge 21.80
1. prepare bank reconciliation

2. record the necessary entries
123
Project 5
Fire fox manufacturing has the following information in relation to commodity D2
for July
Inventory ---------------- July 1. ---------------------------20 units at birr 50
Sales
July 7 ---------------------------------10units
July 18---------------------------------10units
July 27---------------------------------10units
Purchase
July 3-----------------------------------20units at birr 51
July 20----------------------------------15units at birr 52
Requested
1. the company used perpetual inventory system and LIFO costing
Determine cost of goods sold and ending inventory
2. if the company used periodic inventory system and FIFO costing method
Determine cost of goods sold and ending inventory
Project 6
HORRCA is private company registries in Ethiopian that does not maintain
books at accounts during the periods of 2012the company leases abuilding for
birr 4500 per month the company employed professor admasu zeriun as
regular employees and paid 5400 birr per month and also he is lecturer in AAu
and paid birr 7060 per month
Requested
1. determine amounted of monthely employment income tax that is collected
from professor admasu by HORRCA payable to ERCA
2.
3. determine the taxable income and rental income tax liability paid by
HORRCA to ERCA
4. recording the journal entries for pay of liability
124
ANSWER Exercise one
NAME OF Basic Over gross taxable Credit total

EMPLOYEE salary time Allowance earning income EIT pension association deduction net pay
Melaku
Tilahun 5000 500 500 6000 5500 810 350 1750 2910 3090
Olga Jigsa 650 100 750 650 5 46 150 201 550
Giday
Gere 2350 147 230 2727 2497 232 165 0 397 2330
Belachew
Tadese 3600 675 400 4675 4275 553 252 0 805 3871
Total 11600 1322 1230 14152 12922 1600 812 1900 4312 9840
Journal entry
Salary expense 14,152
EIT payable 1,600
Pension payable 812
Credit association payable 1,900
Company pension (11%)
Pension =11,600 x11% =1,276
Pension contribution expense 1,276
Pension tax payable 1,276
EIT payable 1,600
Credit association payable 1,900
Cash 15,428
125
EXERCISE TWO XYZ- COMPANY
SALES BUDGET
NOV 7, 2010
SELLING TOTAL UNIT

ESTIMATED PRICE PER TOTAL UNIT SALES
ITEM SALES UNIT UNIT SALES PRCES REVENUE
PRODUCT A, ARIA 1 30,000 30 900000
ARIA 2 30,000 30 900000
TOTAL 60,000 1800000
PRODUCT B, ARIA 1 20,000 35 700000
ARIA 2 50,000 35 1750000
TOTAL 70,000 2450000
PRODUCT C, ARIA 1 26,000 40 1040000
ARIA 2 56,000 40 2240000
TOTAL 82,000 3280000
Total sales budget = 1,800,000 + 2,450,000 + 3,280,000 = 7,530,000
XYZ- COMPANY
PRODUCTION BUDGET
NOV 7, 2010
PRODUCT PRODUCT
ITEM A B PRODUCT C TOTAL
ESTIMATED SALES UNIT 60,000 70,000 82,000 212,000
ADD: ending inventory 51,000 45,000 41,000 137,000
Total 111,000 115,000 123,000 349,000
LESS: beginning
inventory 60,000 70,000 65,000 195,000
Total 51,000 45,000 58,000 154,000
EXERCISE THREE
1. Cost of goods manufactured = Direct material issued + Direct labor cost + Factor over
head
= 21,000 + 35,000 + 28,000
= 84,000
126
2. Cost of goods sold = CGM + beginning inventory finished good – Ending inventory
finished good
= 84,000 + 16,000 – 18,000
= 82,000
3. Gross profit = sales – CGS
= 117,000 – 82,000
= 35,000
EXERCISE Four
XYZ Company
Bank reconciliation
For the month ended of May 31, 2010
Balance per bank statement 19,513.90
Add: deposit in transit 3915.20
Subtotal 23,429.10
Less: outstanding check 7070.10
Bank error 18.00
Subtotal 7,088.10
Adjusting bank balance 16,341.00
Balance per depository 13,215.80
Add: N/R 3000.00
Interest income 120.00
Deposit error 27
Subtotal 16,362.80
Less: service charge 21.80
Adjusted depositor balance 16,341.00
127
JOURNAL ENTRY
Cash 3,120.00
N/R 3,000.00
Interest income 120.00
Cash 27.00
A/P 27.00
Miscellaneous expense 21.80
Cash 21.80
EXERCISE FIVE
Perpetual inventory
LIFO Costing Method
DATE ITEM PURCHASE COST GOODS SOLD INVENTORY
COST TOTAL COST TOTAL COST TOTAL

QUANTITY COST QUANTITY COST QUANTITY COST
July,
1 Inventory 20 50 1,000
20 50 1,000
3 Purchase 20 51 1,020 20 51 1,020
20 50 1,000
7 Sales 10 51 510 10 51 510
18 Sales 10 51 510 20 50 1,000
20 50 1,000
20 Purchase 15 52 780 15 52 780
20 50 1,000
27 Sales 10 52 520 5 52 260
TOTAL 35 Unit 1,800 30 Unit 1,540 25 Unit 1,260
128
Cost of goods sold = July 7, 10 * 51 = 510 Ending inventory = July 27, 20 * 50 = 1,000
18, 10 * 51 = 510 27, 5 * 52 = 260
27, 10 * 52 = 520 25 unit =

1,260
20 unit = 1,540
Periodic inventory
FIFO Costing Method
Cost of goods sold = July 7, 10 * 50 = 500 Ending inventory = July 20, 15 * 52 =

780
18, 10 * 50 = 500 3, 10 * 51 =
510
27, 10 * 51 = 510 25 Unit = 1,290
30 Unit = 1,510
EXERCISE SIX
1. Basic salary = HARRCA + AAU

= 5,400 + 7,060
= 12,460
INCOME TAX = 12,460 * 35% - 1,500
= 2,861
AAU INC.TAX = 7,060 * 25% - 565
= 1,200
Collection from professor
Admasu by Horec payable
To ERCA = 2,861 - 1200
= 1,661
2. Gross rental income = 4,500 * 12 Month
= 54,000
Allowance = 54,000 * 20% = 10,800
129
Less: Allowance = 54,000 – 10,800
= 43,200
Rental income tax = 43,000*20% - 3,630
= 5,010
PART THREE
Project one
To give to two possible location
FC=Br2, 000 VC=80%
 Millennium hail FC=Br 6,600 VC=60%

 Budget Br3,500 administrative cost and marketing fixed amount of br 2,500 ticket
br 120 person selling price for both A$B
Required
1. BEP interest of ticket sold /sales
2. Operating income
A. 150
B. 300
3. At which level ticket sold the some operating
Project two
Three years ago Olanna, Berhanu and Mezmur established MBO private company as June 30,
2010 the end of the current fiscal year the MBO company trial balance is as follow:
MBO Company
Trial balance
Dec 31 30 2014
Cash----------------------------------------3425
Fee receivable------------------------------7000
Supplies------------------------------------1270
Prepaid insurance--------------------------620
Office equipment------------------------51650
Accumulated depreciation--------------9700
A/p-------------------------------------------925
Unearned revenue -----------------------1250
MBO capital-----------------------------29,000
Drawing ------------------------------------5200
Fees earned ------------------------------59125
130
Wage expense----------------------------22415
Rent expense-------------------------------4200
Utility expense-----------------------------2715
Mis expense--------------------------------1505
a. Supplies on hand ---------------------------------------------------380
b. Insurance expired --------------------------------------------------315
c. Deprecation of equipment—-------------------------------------4950
d. Wage accrued but not paid at June 30, 2010 is birr ---------440
e. Accrued fees earned but not accrued by -----------------------1000
f. Unearned fee on hand birr ----------------------------------------750
Required
1. Adjustment
2. Income statement owner equity balance sheet
3. Closing entries
4. Post-closing entries
Project three
Sales Br---300,000 cost birr 180,000 of merchandise sold

1 year birr-----140,000
2 year birr-----100,000
3year birr-------60,000
Required
1. Gross profit based on sales methods

2. Gross profit for each year
Project four
Jan 1 Inventory----------200 units@ br 9

Jan 10 Purchase----------300 unit birr 10
Jan 29 Purchase-----------400unit@birr11
Jan 30 Purchase-----------100unit@birr12
300 units for sold periodic FIFO methods
131
Required
1. What is CGS CEL

2. Sales price 15Br merchandise inventory calculate g/p
3. General expense br 2500 entertainment expense 900 calculate profit tax
using 30 %loss
Project five
No Name Basic salary allowance Fuel life Worked over time Duration
1 Ababa 5,500 750 200 liter
2 Cultic 3,500 350 150 liter 6 hr Week
3 Keyed 850 10 hr 10pm-6am
4 Alamo 2800 150 100 liter 6 hr Public
5 Aster 1500 50 liter 6hr Public
1. All employee 40 per week and Ato Ababa ,cultic ,keyed 10%of credit association
other 5% of basic salary
2. Fuel allowance br 1000 tax exempted
3. Price fuel br 20 liter pay day
4. Keyed fuel cause contract employee
1. Prepare payroll registration sheet
2. Prepare the necessary entries
Project six
The cash in bank account for ABC Company at august 1, of the current year indicated a
balance of birr 18,443.90 during august the total cash deposited was birr 30,650.75 and
checks written totaled birr 31,770.25 the bank statement indicated a balance of birr
26,465.50 on august 31, comparison of the bank statement the cancelled checks and the
accompanying memorandum with the records revealed the following reconciling items.
a. Check outstanding totaled birr 8,003.84

b. A deposit of birr 2,148.21 representing receipts of august 31, had been made
too late to appear on the bank statement
c. The bank had collected for ABC Company birr 3,650 on a note left for
collection. The face of the note was birr 3,500
d. A check for Birr 84.20 returned with the statement had been recorded by
ABC Company as Birr 8.42 the check was for payment of a obligation to FANO
COMPANY on account.
e. A check for birr 470 returned with the statement had been incorrectly
charged by the bank as birr 740.
f. Bank service charge for august amounted to birr 18.75.
132
Required
1. Prepare bank reconciliation

2. Prepare the necessary entries
Project one
ANSWER
Rent FC chamber of budget 3500+2500=6000

A. TC=2000+6000=8000
SPQ-VCQ-FC=0
120Q-80Q-8000=0
40Q=8000
40 =40
Q= Q=200 ticket
If attend 150
B. FC=6600+6000=12600
SPQ-VCQ-FC
120Q-60Q-12600
60Q=12600
60=60
Q= Q=210ticket
2 A) if attend 150
OT=SP-VC-FC
OT=120*150-80*150-8000
OT=18000-12000-8000
OT=Less (2000)
If attend 300
A) if attend 300
SP-VC-FC
120*300-80*300-8000
OT36000-24000-8000 =
Gain 4000birr
133
B) SP-VC_FC
OT=120*150-60*150-12600
OT=18000-9000-12600
OT = (3600) Loss
B) SP-VC-FC
OT=120*300-60*300-12600
=3600-18000-12600
=5400 birr gain
3. (SPQ – VCQ) – TC = (SPQ – VCQ) = TC

(120Q – 80Q) – 8000 = (120Q – 60Q) = 12600
40Q – 8000 = 60Q – 12600
40Q – 60Q = 8000 – 12600
=
= Q =230 TICKETS
Project two
1. Adjustment
1. Supplies expense-----------------890
Supplies----------------------------890
2. Insurance expense---------------315
Prepaid insurance -----------------315
3. Depreciation expense-------------4950
Accumulated deprecation-----------4950
4. Wage expense----------------------440
Wage payable--------------------------440
5. Fees receivable-------------------1000
Fees earned--------------------------1000
6. Un earned fees ------------------750
Fees earned ----------------------750
134
MBO Company
Income statement
For the month of June 30 2010
Revenue:
Fees earned-----------------------------------------------------------60625
Operating expense:
Wage expense-----------------------------22855
Rent expense-------------------------------4200
Utility expense-- -------- ---- ----------- --2715
Mis expense---------------------------------1505
Supplies expense----------------------------890
Insurance expense--------------------------315
Depreciation expense---------------------4950
Total expense -------------------------------------------------------37430
Net income-----------------------------------------------------------23195
Mob company
Owner equity
For the month ended June 30 2010
MBO capital----------------------------------29,000
Add: net income--------------23,195
Less: withdrawal-----------------5,200
Increasing capital-----------------------------17,995
Ending capital------------------------------------46995
135
Mob Company
Balance sheet
For the month of June 30 2010
Assets
Cash-----------------------------------3425
A/R------------------------------------8000
Supplies--------------------------------380
Prepaid insurance--------------------305
Office equipment---
Less: accumulated depreciation---
Total assets--------------------------------------------------49110
Liability
A/P--------------------------------------925
Unearned revenue---------------------750
Wage payable---------------------------440
Total liability--------------------------2115
Capital
MBO capital--------------------------46995
Total liability $ capital------------------------------------49110
136
2.3 close entries
date Account title DR CR
2014 30 Fees earned 60625
June Income summery 60625
June 30 Income summery 37430
Wage expense 22855
Rent expense 4200
Utility expense 2715
Mis, expense 1505
Supplies expense 890
Insurance expense 315
Depreciation expe. 4900
Total expense 37430
2014 30 Income summery 23195
June MBO – Capital 23195
30 Income summery 5200
MBO drawing 5200
2.4. Post-closing entries

Date Account title DR CR
2014 30 Cash 3,425.00
June Fees receivable 8,000.00
Supplies 380.00
Office equipment 51,650.00
Accumulated 14,650.00
depreciation
A/P 925.00
Unearned 750.00
Wage payable 440.00
MBO capital 46995
63,760.00 63,760.00
Project three
3.1. gross profit=sales-CGS

300000-180000
=120,000
G/P=120,000 x 100 =40%
Sales=300000
137
3.2. 1st year= 140,000*40%= 56000
2nd year=100000*40% = 40000
3rd year=60000*40% = 24000
Total 300000 =120000
Project four
Cost of merchandise available for sales
1) January 1 inventory =200*9 = 1800

January 10 purchase=300*10 = 3000
January 29 purchase =400*11 = 4400
January 30 purchase=100*12 = 1200
Total 1000 unit = 10400 birr
Periodic methods of FIFO
Cost of good solid
CGS January 1 inventory 200*9 = 1800

January 10 purchase 300*10=3000
January 20 purchase 200*11=2200
Total 700 unit=7000 birr
Ending inventory
IE=January 20 purchase =100*12=1200
Purchase=200*11=2200
Total 300 unit=3400
2), G/P=sales-CGS
700*15=10500
G/P=3500
3. Income statement
Sales--------------------------- -10500
Less CGS---------------------- ---7000
G/P--------------------------- -----3500
General expense---- 2500
Loss other expense-- -900
Total expense--------------- ------1600
Operating Income before business tax-- -1900
Business profit tax------------------1900*30/100=570
Operating Income after business tax-------------1330
138
Project 5
MBO Company
Name Basic Allow Fuel O/Tim Gross Taxable Income Pens Credit T/deducti Net pay
of salary ance earing income tax ion & on
employ fund savin
ee g
Ababa 5000 750 4000 10250 9250 2575 330 550 3455 6795
Caltu 3500 350 3000 262.5 7112.5 6112.5 1476.88 210 350 2036.88 5075
Keyad 850 79.69 929.69 929.69 91.95 91.95 837.7
Alamo 2800 150 2000 262.5 5212.5 4212.5 851.25 168 140 1159.25 4053.25
aster 1500 1000 140.63 2640.63 1640.63 210.65 90 75 375.65 2265
total 14150 1250 10000 745.32 26145.32 16516.32 5205.71 798 1115 7118.73 19026.59
Journal entries
1. Salary expense--------------26145.32
Income tax payable-------------------------5205.71
Pension contribution payable------------798
Credit and saving association payable--1115
Salary payable 19026.59
2. Payment of liability
Pension payable-------------798
Credit &saving payable---1255
Salary payable 19026.59
Cash-------------------------26145.32
3. Pension tax liability expense
=14150-850=13300*8%=1064
Pension tax expense--------1064
Pension payable---------------------1064
PAYMENT OF LIABLITY
Pension tax payable---------1064
Cash------------------------------------1064
139
Project six
MBO Company
Bank reconciliation
Balance per bank statement ---------------------------26465.5
Add: deposit in transit-------------------------2148.21
Bank error----------------------------------270
Subtotal----------------------------------------------28883.75
Less: outstanding check------------------------------------8003.84
Adjusted balance-----------------------------------------------------------------------------------20879.87
Balance per depositor ----------------------------------17324.40
Add: collected bank-----------------------------3650.00
Subtotal----------------------------------------------20974.00
Less: Depositor error --------------------------75.78
Bank service charge----------------------18.75
Subtotal---- ------------------------------------------94.53
Adjusted balance-----------------------------------------------------------------------------------20879.87
Journal ENTRY
Cash------------------------------3650
N/R-------------------------------3650
A/R-------------------------------75.78
Cash------------------------------75.78
Miscellanies expense---------18.75
Cash ------------------------------18.75
140
THEORETICAL PART
Choose the best answer
1. Companies need to follow tax low in discharging tax liability

a. Pay tax on employment yearly bases
b. Pay2%profit tax on sales of goods
c. Pay vat on quarterly ad yearly based
d. Pay 15%profit tax o sales of goods
2. Operational budget may not including
A. Sales budget
B. Production budget
C. Cash forecast budget
D. Material purchase budget
3. Planning step I compilation of work activity with planed objectives
A. Setting objective
B. Plan ad schedule work activity
C. Monitor wok activity
D. Implement work plan
4. Opportunities for improvement are monitored codes are used ad work schedule are
adjusted
A. Identify daily work requirement
B. Develop effective work habit
C. Monitor and manage work
D. Evaluate work
5. During period of increasing price which of the following result in higher amount of
inventory of the end at period
A. FIFO
B. Average method
C. LIFO
D. Moving average methods
6. When participating in internal or external for presentation is clear and sequential and
delivered with in a pre-determined time ad difference I news are respected to improving
communication skill
A. Utilized special communication skill
B. Quality standard
C. Quality insurance
D. Conduct interview
7. The banker accountant debit are a customer account in error and prepare bank
reconciliation the error should be adjusted by
A. adding to depositor balance
141
B. deduct from depositor balance
C. adding to bank balance
D. Deducting from bank balance
8. Levels fines and other taxes may including
A. Speeding fines
B. Vat
C. Withholding tax
D. Rental income tax
9. Source of supplies account be for adjusting entries shows 60,000 and inventory of
supplies at the periods 365,000 supplies record as expense at the time of purchase of
supplies at the end of the periods entries
A. Debit supplies and credit supplies expense
B. Credit supplies expense and debit supplies
C. Credit supplies and debit supplies expense
D. Debit supplies expense and credit supplies
10. In Ethiopian tax system small business shops Pays
A. Business income and progressive rate
B. Employee income and progressive
C. Renal income and progressive
D.
11. EAB company engaged in selling difference item to customer and purchase material from
difference supplies verify validity acutely of payment may the following except
A. Payment request are matched to order to other supporting information to insurevalidly
at payment and to comply with internal control requirement
B. Supporting document is checked to ensure it is correct and complete and an
authorization or request is comforted with any discrepancies followed up with our
delay
C. Conformation of goods or service supplies is obtained where required to validate
request for payment
D. All payment are codes and collected to accounts accurately with payment matched
against invoice or other relevant documentation
12. In preparing pay roll the accountant first do
A. Record payroll data
B. Authorization of payroll individual pay advice is obtained
C. Arrangement for payment are made
D. Payroll preparation takes place within designed time lines
13. In using spread sheet software to complete with business tax
A. Enter check and amend data in according with organization and task requirement
142
B. Import and export data between in compatiblespread sheet and adjust cost document in
according with software ad system procedure
C. Usemanual user documentation and online help to overcome problem with spreadsheet
designed ad production
D. Preview adjust ad print spreadsheet In according with organizational task requirement
1. Balance day adjustment =N A. indirect tax
2. Triple bottom principle =O B. fringe benefit
3. Performance measurement =L C. spread sheet
4. Lodgment schedule. =B D. cost charge to product
5. used uploading data =C E. next period budget
6. Cost allocation =D F. from work
7. Rolling for cost =E G. inventory turn over
8. Doubt full methods =I H. broad /breart/
9. Quality standard =F I. receivable are adjusted
10. Add hot report =G J.explain cash difference
11. Analyze and verify source document =M K. service expansion
12. Bank reconciliation =J L. profit and loss statement
13. Develop and refine system for improvement =H M. discrepancies b/t paid
14. Severance pay =K N. deprecation
15. Consumer pay =A O. identify sustainable issued for service
Industry
143
PART TWO
A. Transaction
1. Gross increase in owner’s equity
B. Accounting
resulting business activity
C. Revenue
2. Required the only transaction data
D. Asset
capable of being expressed
E. State of financial position
3. 144summarizing change in owner’s
F. Internal control
equity of enterprise
G. Expense
4. Report asset, liability of business
H. Liability
owner equity of enterprise
I. Owner equity statement
5. State that economic event of the
J. Owner equity
enterprise recording by account
K. Monitory unit assumption
6. Statement of financial performance
L. Economic unit assumption
7. Economic event of the enterprise
M. Ownership claim
recording by accountant
N. Cost principle
8. State of four economic can be
O. Return on investment
certificate with particular unit
P. Statement revenue and net
accountability
income report
9. Resource owned by the business
Q. Balance
10. Cost of asset concerned of service
R. Standard
11. Creditor ship claims on the total
asset
12. Common set of role procedure and
guidelines used accounting evening
data
13. States for economic can be
certificate with particular unit
accountability
14. The process of recording identifying
communication
15. State of asset of the cost
Answer
1. C 5. A 9 D 13 L
2. K 6. P 10 G 14 B
3. I 7. A 11 H 15 N
4. E 8.L 12 F
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Coc Exam-1

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Coc Exam-1

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PART ONE

The five S’s may include (continuous improvement)

I. Sort- identify and eliminate all unnecessary item

 Academic results  Personal attribution

1.1 process word activities

1. Open MS –program and process the documents below.

1.2 process excels /spreadsheet / Activities

1. Open Ms –Excel program and process the following documents.

1. Total buying price =Quantity x buying price

Wheat buying and selling chart

1.3 process simple written communications

Sector Qualification Level Version

Business Sector Basic Clerical Level 1 V1 & V2

1. Competence one demonstrate OHS processes in work place communication

No Type of product asset liability capital income expense total

1 Textile production 8,000 6,000 2,000

2 Petroleum production 16,000 9,000 6,000

3 Cement production 15,000 8,000 7,000

NB: income=15% of assets

Total =assets +liability +capital +income - expense

1. Draw the line chart

1. Demonstrate skill and knowledge on how operate office equipment

 Follow establish safety procedures

Write office memorandum for the following

From: Human resource department

To: Finance department

Data: December 31, 2010

 Sum for Behailu =65+66+88+79→Enter or =select sum from sum→enter

Work effectively in business environment include

a). Work within organizational requirements

 Identify roles and responsibilities of colleagues and immediate supervisors

Apply work value include

Organize and complete daily activities include

a) Organization work schedule

i. Develop effective work place relationship

Apply quality standard include

A. Assess own work

I. Select equipment or resource

Receive and respond to work place communication include

I. Follow routine spoken message

Sustainable work practice include

I. Identify current resource use

PERSONAL SKILL INCLUDE

I. seek advice on future career direction in industry or organization

 Are primary mover

 Who obtain finance for the business

 Manage the business

Demonstrate characteristics of entrepreneurship

 Responds to feed back

 Discus how to become enterprising

1. Apply five S procedure

 Discus quality insure procure of enterprising organization

 Explain s5 system as part of quality insure with work of organization

ii. Sort need item from un needed

 Identify all item the work area

 Distinguish b/n essential and non-essential item

iii. Set work place order

 Identify the best location from each essential item

 Place each essential Item assigned the location

iv. Shine work area

 keep the work area clean and tidy at all item

 Conduct regular housekeeping activity during shift

 Follow check list activity were available