2. INFORMATION PACKAGE FOR LEVEL III.

Project one (1)

Monitor and Control A/Receivable

Given is the Balance Sheet of Ashenaf Berhane and Dawit Partner’s on Nov 3,2012 The Date the partner’s Decided to
Liquidate Their Partner Ship .

ABD Partner

Balance Sheet

Nov 30, 2012

Cash----------------------------------------- Br 70,000

Non Cash Asset ------------------------------110,000

Total Assets ------------------------------------------------------180,000

A/Payable ---------------------------------- Br 54,000

Ashenaf Capital ----------------------------50,000

Berrhane Capital --------------------------34,000

Dawit Capital -------------------------------42,000

Total Liability and Capital ----------------------------------------180,000

Between Nov 3& 30 the non Cash Assets Were Sold for Birr 140,000 Ashenaf Berhane and Dawit Share Income and
Losses Based on Their Beginning Capital

Required

Prepare Statement of Partnership Liquidation And all Necessary Journal Entry to Record Liquid of The Partnership

Assume that any Partners Who had Debit Balance in their Capital Accounts after Loss Distributions Immediately Paid Cash to
the Partnership

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 Asset Liability Capital

Cash noncash asset Account Payable Ashenaf Capital, Berhane Capital, Dawit Capital

70,000 110,000 54,000 50,000 34,000 42,000

1, sales of non 140,000 (110,000) _______ _______ ______ _______

Cash asset

Balance 210,000 0 54,000 50,000 34,000 42,000

2, Payment of

Liability (54,000) 0 (54,000) __ ____ ___

Balance 156,000 0 0 50,000 34,000 42,000

3, Distribution ____ _ _ +11,904.76 +8,095.24 +10,000

Gain or loss

Balance 156,000 ____ _____ 61,904.762 42,095.24 52000

4, Distribution (156,000) (61,904.76) (42,095.24) (52000)

Cash

Balance 0 0 0 0

Necessary Journal Entry

(To record of Sales non cash asset)

1, Cash ----------------------------------------140,000

Non Cash asset -----------------------------110,000

Gain ------------------------------------------30,000

2(To record Payment of Liability)

A/Payable -----------------------------------------54,000

Cash ---------------------------------------------54,000

3,(To Record Distribution Gain )

Gain ----------------------------------------------30,000

Ashenaf Capital --------------------------------------------------11,904.76

Berhane Capital --------------------------------------------------- 8,095.24

Dawit Capital -----------------------------------------------------10,000

4 (To Record Distribution of Capital or Cash)

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Ashenaf Capital --------------------------------------------------61,904.76

Berhane Capital -------------------------------------------------- 42,095.24

Dawit Capital ------------------------------------------------------52000

Cash ----------------------------------------------------------------156,000

Project Two
Trans Ethiopia Corporation Opened the Year 2007 G.C with the Following Trial Balance Information

Accounts Debit Credit

Cash 100,000
Account Receivable 300,000
Land 600,000
Account Payable 240,000
Loan Payable 120,000
Capital Stock 200,000
Retained Earning 440,000
Dividend
Revenues
Salary Expense
Rent Expense
Supplies Expense
Interest Expense
Total 1000,000 1000,000
Journal Transaction Project Two

Jan 2 Collected Birr 40,000 On an open Account Receivable

Jan 3 Purchased Additional Track of Land for Birr 80,000

Jan 5 Provide Services On account to a customer for birr 60,000

Jan 7 Borrowed Birr 48,000 on term Loan Payable

Jan 11 Paid salary of Birr 12,000

Jan 12 Provide Services to a Customer for Cash birr 44,000

Jan 15 Purchase (And Used) Office Supplies On account Birr 8,000

Jan 17 The Company Paid share holders Birr 10,000 Dividend

Jan 20 Pay Rent of Birr 6,800

Jan 23 Paid Salary of Birr 16,000

Jan 24 Paid birr 64,000 on the open Account Payable

Jan 29 Collected Birr 200,000 on Account Receivable

Jan 31 Repaid Loan of Birr 88,000

Jan 31 Paid Interest on Loan 2,400

REQUIRED

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A, Prepare Journal Entry for Jan Transaction

B, Post Journal Entries to General Ledger

C, Prepare Trial Balance of Jan 31, 2007

1, Income Statement

2, Statement of Retained Earning and

3, Balance Sheet of Jan 31, 2007

Trans Ethiopia Corporation

A, Prepare Journal Entry for Jan Transaction

For the Month of Jan 2007

Jan 2, Cash ---------------------------------------------------------------- 40,000

Account Receivable ------------------------------------ ---40,000

Jan 3, Land ---------------------------------------------- ---------80,000
Cash --------------------------------------------------------------80,000
Jan 5, Account Receivable ----------------------------- --------60,000
Fees Earning ------------------------------------ ------------60,000
Jan 7, Cash ---------------------------------------------- ---------48,000
Loan Payable ------------------------------------ ------------48,000
Jan 11, Salary Expenses ------------------------------ ---------12,000
Cash ----------------------------------------------------------- -12,000
Jan 12, Cash ----------------------------------------------------- 44,000
Fees earning ------------------------------------------------ - -44,000
Jan 15, Supplies Expense ------------------------------------- -8,000
Account Payable -------------------------------------- ------------8,000
Jan 17, Dividend ----------------------------------------------- 10,000
Cash ------------------------------------------------ -----------10,000
Jan 20, Rent Expense ----------------------------------------- 6,800
Cash ------------------------------------------------ ------------6,800
Jan 23, Salary Expense ------------------------------- -------16,000
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 Cash ------------------------------------------------- -----------16,000
Jan 24, Account Payable ------------------------------ --------64,000
Cash -------------------------------------------------- ----------64,000
Jan 29, Cash ---------------------------------------------------- 200,000
Account Receivable ------------------------------------------ 200,000
Jan 31, Loan Payable ---------------------------------------- 88,000
Cash ------------- ---------------------------------- -----------88,000
Jan 31, Interest Payable --------------------------------------- 2,400
Cash -------------------------------------------------------------- 2,400

Trans Ethiopia Corporation

B, Post Journal Entries to General Ledge

For the Month of Jan 2007

Date Description P/R Debit Credit Balance

Debit Credit
Jan 1 Cash 100,000
Jan 2 40,000 140,000
Jan 3 80,000 60,000
Jan 7 48,000 108,000
Jan 11 12,000 96,000
Jan 12 44,000 140,000
Jan 17 10,000 130,000
Jan 20 6,800 123,200
Jan 23 16,000 107,200
Jan 24 64,000 43,200
Jan 29 200,000 243,200
Jan 31 88,000 155,200
Jan 31 2,400 152,800

Jan 1 Account Receivable 300,000

Jan 2 40,000 260,000
Jan 5 60,000 320,000
Jan 29 200,000 120,000

Jan1 Land 600,000

Jan 3 80,000 680,000

Jan 1 Account Payable 240,000

Jan 15 8000 248,000
Jan 24 64,000 184,000

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Jan 1 Loan Payable 120,000
Jan 7 48,000 168,000
Jan 31 88,000 80,000

Jan 1 Capital Stock 200,000 200,000

Jan 1 Retained Earning 440,000 440,000
Jan 17 Dividend 10,000 10,000
Jan 6 60,000 60,000
Jan 12 44,000 104,000

Jan 11 Salary Expense 12,000 12,000

Jan 23 16,000 28,000
Jan 20 Rent Expense 6,800 6,800
Jan 15 Supplies Expense 8,000 8000
Jan 31 Interest Expense 2,400 2400

Trans Ethiopia Corporation

Trial Balance Jan 31, 2007

For the Month of Jan 2007

Description Debit Credit

Cash -------------------------------------------------152,800
Account Receivable ------------------------------120,000
Land ------------------------------------------------ 680,000
Account Payable ------------------------------------------------------184,000
Loan Payable -----------------------------------------------------------80,000
Capital Stock -------------------------------------------------------------200,000
Retained Earnings -------------------------------------------------440,000
Dividend -------------------------------------------10,000
Fees Earned ---------------------------------------------------------------------------------- 104,000
Salary Expense -------------------------------------28,000
Rent Expense ---------------------------------------6,800
Supplies Expense ---------------------------------- 8,000
Interest Expense ----------------------------------- 2,400
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Balance ----------------------------------------------1,008,000 ------------------------------1,008,000

Trans Ethiopia Corporation

Income statements
For the Month of Jan 2007

Revenue:
Fees Earned ---------------------------------------------------------------104,000

Less Operating Expense:

Salary Expense ---------------------------------------------28,000

Rent Expense -----------------------------------------------6,800

Supplies Expense -------------------------------------------8,000

Interest Expense -------------------------------------------- 2,400

Total Operating Expense -------------------------------------------------- 45,200

Net Income ---------------------------------------------------------------------58,800

Trans Ethiopia Corporation

Retained Earning
For the Month of Jan 2007

Capital Stock ---------------------------------------------------------------200,000

Add; Net Income ------------------------------------58,800
Less: Dividend ---------------------------------------10,000
Increasing Capital------------------------------------------------------------48,800
Ending Capital ----------------------------------------------------------------248,800

Trans Ethiopia Corporation

Balance Sheet
For the Month of Jan 2007

Asset = Liability + Capital

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Cash -----------------------------------152,800 Account Payable -----------------184,000 Capital Stock -------------248,800

Account Receivable -----------------120,000 Loan Payable -------------80,000 Retained -----------------440,000

Land ------------------------------------680,000 Total 264,000 Total 688,800

Total Asset ------------------------ 952,800 264,000 + 688,800 = 952,800

Project Three (3)

Bank Reconciliation
Saba Cash Book at 30th November 2007 showed an over drawn Position of Birr 2,118 at though her bank Statement showed
only 3,630 over Drawn Detailed Examination of the two records revealed the Following

A, Debit side of cash book had been Understand by 300 Error Recording Collection of account Receivable

B, A check for birr 1560 in favor of z Suppliers LTD had been omitted by the bank from its statement the check having been
debited to another customers account

C, A check for Birr 182 drawn in payment of the Telephone Expense Account had been interred in the cash book as Birr 128
but was shown correctly on bank statement

D, A check for Birr 210 from customer on account having been paid in to the bank was dishonored and Shawn as such on the
bank statement although no entry relating to the dishonored had been make in the cash book.

E, the bank had debited a check for birr 126 to Saba account error it should have been debited by them to Saba’s account in
error it should debited by them to Sheba’s account

H, dividend of birr 90 on keys holding of ordinary shares has been paid direct to her bank account and no entry made in the
cash book.

F, Check totaling birr 1,260 drawn on 29th NOV hand not been presented for. Payment
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G, Deposits in transit Nov 30, Totaled birr 1,080

I A interest Amounting to birr 228 had been Debit by the bank but not entered in the cash book

A, per bank Statement --------------------------------------------------------------- 3,630

Add Deposit In transit -------------------------------------------1,080

Error by the bank ---------------------------------------------------126--------------1206

Sub total -------------------------------------------------------------------------4836

Deduct Check Omitted Z Supplies -----------------------------1560

Understated ---------------------------------------------1260 ------------2820

Adjusted Balance per Bank -------------------------------------------------------------------- 2,016

B, Per Depositor Statement -----------------------------------------------------------2,118

Add: Suspense understate -----------------------------------------300

Add: Dividend Received --------------------------------------------90 ---------------390

Sub Total -----------------------------------------------------------------------------------2,508

Deduct: Depositor Error ------------------------------------228

Dishonored check --------------------------------210

Telephone --------------------------------------------54

Sub Total ------------------------------------------------------------------------------------492

Adjusted Balance per Depository -------------------------------------------------------------- 2,016

2, Necessary Journal Entry

Nov 30, 2007: Cash in bank -----------------------------------390

Suspense Understate --------------------------------------300.00
Dividend Received -----------------------------------------90.00

Nov 30, 2007 Interest --------------------------------------------228

Telephone ---------------------------------------- 54

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 Dishorned Check (NSF) ------------------------210
Cash in bank --------------------------------492.00
PROJECT 4: PROCESSING PAYROLL.

The following data are take from Almeda textile Plc for the month of hider 2007 E.C

No Name of Basic Over Time Allowance

employee Salary
1 Letay kidane 8,710 No 1,500 Position All
1,000 House Allowance
2 Dewit G /Hiywot 1,250 6hrs Public holiday (2.5)

3 Mesfin Bekele 4,242 6hrs Evening (1.25) 40% Basic Hardship

5hrs Night (1.50) Salary Allowance
4 Weldey Nuguse 2,308 8hrs Weekend (2.00)

Additional Information

1. All employees are permanent and worked 40 hours per week.

2. During sane 2007 E.C All worker have been done been expected.

3. WELDAY NIGUSE monthly pay birr 550 from his salary for credit association.

4. Assuming that Pension Contribution 7% from employee& 11% from Employer.

REQUERED:

A. Task 1.Prepare payroll register sheet.

B. Task 2.Pass necessary journal entry.

Solution
Almeda textile Plc
Prepare payroll register sheet

For the month of Hidar 2007 E.C

Name of Gross Salary Deduction Total Net Pay
Employee Basic Total Gross EIT PC CA Deductio
S/N Salary n
Salary OT Allowan
ce
1 Letay Kidane 8710 0 2500 11,210 3261 609.70 0 3,870.70 7,339.30
2 Dawit G/Hiwot 1250 117.1875 0 1,367.19 157.58 87.50 0 245.08 1122.11
3 Mesfin Bekele 4242 397.69 1696.80 6336.49 979.40 296.94 0 1276.34 5,060.15

4 Welday Nuguse 2308 230.80 0 2538.80 399.70 161.56 550 1111.26 1427.54
Total
16510 745.6775 4196.8 21,452.48 4797.68 1155.7 550 6,503.38 14,949.10

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B, Necessary Journal Entry

1, To record the Salary Expense

Salary Expense-------------------------21452.48

EIT Payable ------------------------------------------------4797.68

PC Payable -------------------------------------------------1155.70

CA Payable -------------------------------------------------550.00

Cash ---------------------------------------------------------14,949.10

2, To record the credit Association for Welday Nuguse

CA Payable --------------------------------550

Cash ------------------------------------550

3, To Record the Payroll Tax expense

Payroll tax Ep --------------------------------------------1816.10

Pc Payable --------------------------------------------------1816.10

4 To record the payment of withholding in land revenue authority

EIT Payable -----------------------------------------4,797.68

Pc Payable ------------------------------------------2,971.80

Cash --------------------------------------------------------7,769.48

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 Project 5: DEPRECATION

Prepare Financial Report

Assume that mesfin Industrial PLC Company Purchased Machinery From birr 100,000 on Jan 1, 2001 G.C

The machine has use full life of five years and salvage valve of 10,000 the accounting period of Mesfin is from Jan 01 up to
Dec 31

Required Using double Decaling Balance Method Calculate Depression Expense for

1, 2001 G, C 4. 2004 G.C

2. 2002 G.C 5. 2005 G.C

3.2003 G.C

. Depreciation rate = Depreciable expense *2 OR 2/ useful life

Depreciable cost

Depreciation expense=Book value* depreciation rate

Ending Book value = Original cost –Accumulated depreciation

1. 2001 = 10,000*0.4=40000

2. 2002=10,0000-40000*0.4=24000

3. 2003=10,0000-64000*0.4=14,400

4. 2004=10,0000-78400*0.4=8640

5. 2005=90000-87040= 2960 when expense is cumulated from year to year

Or expense added OC –Accumulation Depreciation

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Year Original Beginning Depreciation Depreciation Accumulated Ending book value
cost book value rate expense Depreciation
2001 100,000 - 40% 40000 40000 60000
2002 60000 40% 24000 64000 36000
2003 36000 40% 14400 78400 21600
2004 21600 40% 8640 87040 12960
2005 12960 40% 2960 90,000 10,000

Skill Gap Accounting Level III

Matching

1. Factors measurement of Depreciation B A, Income tax

2. Claims with an Evidence l B , Estimated Use fully life asset
3. Example of fixed asset t C, Special Journal
4. Shows information about revenue &Expense G D, Land
5. Excess of proceed over face value s E, Debit
6. Indirect Tax I F, Trial Balance
7. Equality of debit and credit F G, Income statement
8. The assets not depreciated blow salvage expense D H, Balance Sheet
9. Control asset account to record desperation expense M I, Stamp Duty
10. Direct tax A J, Stregative
11. End of accounting of process n K, General Journal
12. Disadvantage of indirect tax u L, Notes Receivable
13. Record only one type of transaction C M, Accumulated Depreciation
14. Writing off cost of Intangible asset p N, Posting closing trial balance
15. Normal Balance of Owners equity and revenue account W O, Double Deduction

P, Amortization

Q, Indirect Tax

R, Not Payable

T, Building

S, Deprecation

U, Regressive

V, Account Receivable
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 W, Credit side

1, when Not Receivable is not paid by the markers as to the Equipment WWww,credit sid
A, Degnon overd Note B, Long term Notes Receivable C, Short Terms Note Receivable Written off

2, Amount Have all ready in Carried by in organization but not yet paid

A, Accrued Expense B, Accrued Revenue C, Prepaid Expense D, Prepaid Rent

Code 2

A “B

1, Balance sheet ---------------------------------------------Business entity concept

2, Retained earning ----------------------------- ------------------Corporation

3, Coaching and monitoring -------------------------------------Provide assistance of problem

4, Performance measurement -----------------------------------Monitor and evolution work please

5, Promotions -------------------------------------------------------Pros Release

6, Feed back ---------------------------------------------------------source of document

7, Vat ----------------------------------------------------------------- Consumer performance

8, Method of communication -----------------------------------Speaking to group

9, Spread sheet ----------------------------------------------------Software function

10, Income summary acct --------------------------------------To close temporary account

11, Expense account --------------------------------------------- Freight in and out

12, Complete Documentation ----------------------------------Continuous improvement

13, Specific need of consumer ---------------------------------Decade and recorded

14, Plan of finance -----------------------------------------------budget

15, Formula --------------------------------------------------------Percentage

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