QUEENS’ COLLEGE

TVET PROGRAM

Formative ASSESSMENT (20%)

KNOWLEDGE AND PRACTICAL PACKAGE

Trainee’s Name:
GENET ZELEKE DESTA
ID No.:
GEACE/0234/11
Occupation/Department: Account & Budget Support

Entry & Level LEVEL III, 2011 E.C ENTRY

Unit Title: 1. Holding Cash balance.

2. Process payroll.

3. Prepare financial report.

4. Maintain business record

5. Calculate taxes, fees and charges.

6. Process customer complaints.

7. Deliver and monitor a service to customers.

8. Monitor implementation of work plan/activities

9. Handling foreign currency transaction.

10. Maintain automatic teller machine (ATM) service.

General Directions:
Dear trainee, in doing your individual assignment successful, you have to:-
 Devote your time and submit the assignment up on the schedule.
 Create interdependence and build individual responsibility and accountability.
 Use your comprehension to complete the assignment.
 Examine your capacity for COC exam by doing this assignment by yourself.
 Explain your idea briefly and clearly, neatness is expected.
 You can refer your note book and different supporting resources.

Be Beautiful! Be Smart! Be Stylish! But, Protect Yourself From Covid-19 Virus!

 Part I knowledge part
1. Define and give examples for the following accounting online terms
A. Accrued expense
B. Accrued revenue
C. Deferred revenue
D. Deferred expense
E. Unearned revenue
F. Forex
G. ATM
H. Preferred stock
I. Common stock
J. Stock holders
K. Bank reconciliation
L. Cash flow
M. Unbilled fee
N. Capital expenditure
O. Foreign currency
P. Payroll expense
Q. Overstate
R. Under state
S. Tax
T. Progressive tax
U. Regressive tax
V. Proportional tax
W. Allowance
X. Direct tax
Y. Indirect tax
Z. Liquidation
2. Write the advantages and dis advantages of corporation.
3. Write the advantages and dis advantages of partnership.
4. Write the importance of ATM.
5. Why do you hold money/cash?
 6. How do you handle customer complaints?
7. Write the importance of tax in Ethiopia
8. How does someone waste time?
9. Write types of work schedule.
10. Write components of payroll.
Practical part
Project one : balance cash holding
Partners W,X,Y and Z have conducted business together for a numbers of years. They
decided to share all profits and losses in the ratio of 5:2:2:1. On October 31 year
2018decided to wind up the partnership by collecting their receivables and selling all
remaining assets of the business. A summarizing of the balance sheet of balance sheet
of the partnership of the following on this date is shown below.
ASSETS LIABILITIES
Cash 5000 Account payable 10000
Miscellaneous assets 60000 PARTNERS’EQUITY
W _capital 16000
X _capital 18500
Y _capital 13000
Z _capital 7500
Total 65000 Total L and EQ 65000
During the month of November the miscellaneous assets were realized for Br 48000 in
cash. The resulting br 12000 is loss is allocated to the partners, liabilities are paid fully
and the remaining 43000in cash distributed to the partners.
Task 1. Prepare liquidation schedule for wxyz company.
Task 2. Prepare the necessary Journal entries for liquidation.
Project two: balance cash holding
Kiya PLC is a company which is established for the manufacturing and distribution of kk
products. The cash book of enterprise has shown a statement balance of birr 55600 on
February 28, 2019. At the same date, the bank statement balance of the business
account was birr 54200.50
The difference that accounted for the balance was as follows
. A deposit of February 2019 birr 6800 was recorded on balance on march 2019.
. A cheques written for mesfin, a customer of KIYA PLC was with down from bank on
march 4,2019 birr 6200
. A bank service charge of birr 300 was not recorded by depositor.
 . An Accountant of KIYA PLC recorded a check amounting birr 5750 collected from
customer as 5570. The face value of the cheque was 5750
. The bank credited KIYA’S deposit erroneously birr 75.50 instead of birr 755.00
Task1 prepare bank reconciliation at February 2019.
Task2 pass necessary adjustment journal entries.
Project three: prepare financial report
For the month ended on Dec 31,2018

Account title Debit Credit

Cash 40000
A/R 16000
Office equipment 60000
Accumulated depreciation – 5500
equipment
Office supply 12500
Prepaid insurance 8500
Account payable 32500
Deferred liability 26000
Sales 30000
ABC capital 43000
Total 137,000 137000

Additional information

A. At the end of Dec31, 2018 the amount of insurance remaining in Birr 5,500
B. During the year the office supplies used is amount to be Br 5000
C. For five year estimated life and straight line is used for office equipment there is no
salvage value.

Required

Task1.1 makes any adjusting entry for the year of December31, 2018

Task 1.2 prepares adjusted trail balance on Dec 31, 2018.

Tasks 1.3 prepare financial statement income statement, owner equity and balance sheet.
Assume 30%of tax.
 Task1.4 Prepare post-closing trail balance.

Project four

A warehouse with a cost of birr 800000 has an estimated residual value of birr 200000 an
estimated useful life of 40 years and depreciated by straight line method.

A. What is the amount of annual depreciation ?

Project five : prepare payroll sheet

Given:
Awash bank is one of the known financial institution in Ethiopia and the institution has hired
additional staffs for Gambella branch. The institution operate based on Ethiopian tax regulation
pay salary at the end of month and employees have to work 8hour per day and 40hoursin week
for the month of september2017
s/n Name of employee Basic Transport Dessert al Overtime Durations
salary allowance allowance Earnings and rates of
/overtime overtime
worked
01 Reta Getachew 8000 1200 880 - -
02 Abdi Lemma 5300 795 583 8hrs 6pm-
10pm(1.25)
03 Tesfanesh Mekonnen 4400 660 484 10hrs Holiday(2.5)
04 Semira Shifa 6100 915 671 6hrs 10pm-
6am(1.5)
05 Netsanet Alemu 2700 405 297 12hrs Weekend(2)

Additional information
1. All employees have 5% of their basic salary for credit association and saving
2. Transport allowance is excess of birr 600 is taxable and desert allowance is not taxable
 3. Pension contribution by employee and employer is 7% and 11% respectively.
Task 1. Prepare payroll register/ sheet which show the basic salary, gross, deduction and net
pay month September 30, 2017
Task 2. Make all necessary journal entries/ transaction that related to payroll
Task 3 record pays the required entry when you pay withholding
Project six: maintain business record
Task 1: record transaction and post to the necessary account
Date Transactions

Hamle 8 A check no.55 for br. 5000 is written as advance payment for uniforms and clothing to
Akaki Garment for the sub agency. The total costs are agreed at br.7000

Hamle 10 The following checks are written for payment:

a. Check No.89 br. 600 for electricity

b. Check No.78 br. 300 for telephone bill
c. Check No.65 br. 300 for water and post

Hamle 14 Br. 2000 is paid to purchaser to buy tires for the organization cars

Hamle 18 The purchaser submits an invoice for the br. 1950 and goods receiving note (GRN) and
refunds the balance of br.50 in cash to the cashier to settle the above transaction.

Hamle 19 ABC governmental enterprise advertises for the bidders which are capable of supplying
office furniture and are instructed to submit cash of Bid security amount br. 2000 each
(assuming that the bidders are 10 in number, record the payment of the bid security by
the bidders)

Hamle 23 Bank credit advice is received for amounts totaling br.7250 for the notes collected by
bank.

Hamle 25 The cashier requests petty cash replenishment by providing invoices for br. 200 of
miscellaneous, br. 1910 of gasoil and br.860 of perdiem and the remaining balance of
br.11 out of her petty cash amount br.3000. Record the transaction including the
replenishment.

Hamle 30 The company returned the bid security bond to the bidders which did not fulfill the
bidding requirements by accepting only three of the bidders at all after the bidding
process is completed.
Project seven: calculate tax, fee and charge
The financial records of Alem Tsege Share Company Shows the following data as of sene 30,
2019
Sales ------------------------------------------------200,000.00
Sales return and allowance ----------------------4,000.00
Sales discounts --------------------------------------6,000.00
Costs of goods sold---------------------------------40,000.00
Operating expense ---------------------------------30,000.00
Interest expense --------------------------------------3,000.00
Assume that entertainment and uncollectible accounts expense includes Br.2, 000 and 6,000
respectively. The company expected to pay 30% of business profit tax during the year. The
doard of director declared that 60% of income after income tax to be distributed to
shareholders as dividend.
Task 1.1 prepares income statement for tax purpose as of sene 30, 2003
Task 1.2 calculates business profit tax for the year?
Task 1.3 calculate dividends for the year
Task 1.4 calculates dividend income tax for the year
Task 1.5 calculate net dividends
Project eight: handling foreign currency transaction

Zona trading engaged in importing commercial vehicles from abroad and sold the vehicles with
after sales service. On March 1, 2015 the company’s cash balance indicates a bank account
balance of br. 12,250,075. During the month the company also imported 20 units of vehicles from
German at FOB value of Euro 40,000 and br. 31,800.00 for insurance and br.88, 200.00 for freight
cost.
The following exchange rate and tax rates are applicable:
Buying selling
Euro 21.57 22
VAT, 15%, Excise tax -30%, Custom duty-35%, withholding tax-3% and sur. Tax, 10%
Required
1. Calculate the total cost of imported vehicles before duty and tax payable assuming that
the enterprise charged 1.5% for service charge on FOB value by bank
2. Calculate total duty and tax payable at the time of import
3. Based on the above data, determine the account balance in bank at end of the month.
4. Determine total cost of each imported vehicles