Project 1: work effectively in financial sectors and process customer’s account and

transactions
Assume you are an employee of fortune commercial bank, which operates in Ethiopia, at the
position of bank clerk you are well trained staff in banking industry based on the given information
answer the following question which is related with daily actives.
Task1.1 XYZ Company approaches to your counter in order to open current account, what are the
required information’s to open the companies account?
Task 1.2 if Xyz Company comes in to Albania bank to open a current account. What will looks
like the procedures?
Task 1.2 what are the possible services you are expected to provide for potential customers?
Task 1.3 assume you are assigned to sell bond ,shares and other treasury bills ,what are the
possible customers that will purchase those financial instruments?
Task 1.5 what do you think the role of national bank of Ethiopia to regulate fortune commercial
bank?
Project 2 Develop understanding of Taxation

ABC Company acquires IT equipment service for Birr 150,000 before VAT. The company has
five permanent employees; the basic salary of employee is shown below

Employee name Basic salary Taxable allowance

Yiftusera Gebire Br 4,300 Br 600

Yitages Belay 3,500 500

Yalemzer Atalay 9,500 2,000

Desalegn Teke 2,500 300

Jebessa Olango 1500 100

During June, 2011, the company earned revenue of birr 540,500 VAT inclusive.
Task 2.1 calculate direct and indirect tax liabilities for the year 2011

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Project 3 Develop business practice and work with other
Ato Belachew lives in a village 20km away from Addis Ababa which is newly established
village. He wants to develop business plan to start supermarket with total capital of birr 90,000
and he has birr 5,000 only in his bank account. Expects to monthly revenue of 40.000 birr. In
order to fulfill his financial requirements, he has two options.
Option 1` Borrow the deficit of capital from his bank with an interest rate of 14% for two years
that will be paid yearly with equal installment,.
Option 2 Borrow the deficit from credit & saving association with an interest rate of 15% for four
years to be paid yearly with equal installment.
Required: perform the following take
Task 3.1 what are the possible source of information to develop his business plan and
equipment’s used for gathering information communication?
Task 3.2 calculate estimated rate of return for Ato Belachew
Task 3.2 which option is better for Ato belachew and recommends other possible source of
finance to fulfill his capital deficit?

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 Project 4 Develop personal budget and saving plan
The family of Selamu Neway has two children’s, husbands and wife .The total income of the
family for the month of January is birr 1,950 .During the month of January and February the
family has the following budget allocation and actual expenditure for the month of January

Description Budget Actual expenditure Budget for February

House operation Br 675 774 Br 675

Food 560 1575 560

Transportation 200 172 200

Clothing 130 105 130

Medical care 90 57 90

Education 80 79 80

Contribution 70 80 70
and gifts

Savings 70 70 70

Miscellaneous 75 72 75

Task 4.1 prepare budget performance reports for the month of January
Task 4.2 prepare the budget allocation for the month of February
Task 4.3 what is the percentage of saving for the family?

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Project 1

Task1.1

 TIN certificate
 Registration certificate
 Memorandum of association
 Trade license of the company
 Letter of application
 Signatories to operate the account
 Initial deposit
 Investment license
 ID signatories
 Supporting letters from the concerned government agencies

Task1.2

 Transfer local
 Deposit
 Payment card services
 Loan (credit facility)
 Advice customers about banking
 International banking (import and export)
 Advice about investment alternatives
Task1.3
 Banks and non-bank financial institutions
 Corporations
 Local and international government agencies
 Individuals
 speculators

Task1.4
 Regulating and monitoring banks and other financial institutions
 Maintain financial stability in the country
 Regulating payment system in the country
 Management of government debts
 Setting and implementing monetary polices
 Printing of currencies of the country

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 Task1.5
 Interview customer why it closes its bank account
 Have an application letter to close an account
 Verify all documents for closing
 Apply related policies and procedures to close accounts
 Other related activities

Project 2

Task 2.1 Direct taxes –employment income tax

ABC Company

Payroll sheet

For the month of June 2011

Employee name Basic Taxable Taxable Employment

Yiftusera Gebire Br 4,300 Br 600 4,900 677.50

Yitages Belay 3,500 500 4,000 497.5

Yalemzer Atalay 9,500 2,000 11,500 2,525

Desalegn Teke 2,500 300 2,800 277.50

Jebessa Olango 1500 100 1,600 100

Total 21,300 3,500 24,800 4,077.50

Indirect taxes

 Input VAT=150,000*.15=22,500
 Output VAT=540,500/1.15*.15=70,500
 VAT liability=70,500-22,500=48,000

Project 3

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 Task 3.1 source of information’s

 Accountant
 Government agencies
 Online gateways
 Business brokers/business consultants
 Chamber of commerce
 Industry ?trade associations
 Lawyers and providers of legal advice
 Financial planners and financial institution representatives, business planning specialists and
marketing specialists.
Equipment’s used to collect information and communication
 Telegram Telephone
 Internet
 Personal contact
 Radio transmission
 Personal interview
 Questionnaire
 Other possible means
Task 3.2
Rate of return=40,000/90,000*100=44.44%
Task 3.3
Option 1 Interest year1=85,000*.14*1=11,900
Interest year2=42,500*.14=5,950
Total interest =11,900+5,950=17,850
Option 2
Interest year1=85,000*.15*1=12,750

In Interest year2=63,750*.15*1=9,562.50

Interest year3=42,500*.15*1=6,375

Interest year4=21,250*.15*1=3,187.50

Total interest-----------------------31,875

Therefore Ato Belachew should choose option 1

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 Project 4

Task 4.1 and 4.2

Ato Sewnet Family

Budget performance report

For the month of January and budget allocation for February

Description Budget Actual Budget Budget for Budget allocation for

Housing 675 774 (99) 675 576

Food 560 575 (15) 560 545

Transportation 200 172 28 200 228

Clothing 130 105 25 130 155

Medical care 90 57 33 90 123

Education 80 79 1 80 81

Contribution 70 80 (10) 70 60
and Gifts

Saving 70 70 - 70 70

Miscellaneous 75 72 3 75 78

Task 4.3

Personal saving percentage =70/1950*100=3.6%