Project 1

HPTC present loan proposal to DASHEN bank & the bank provides three month credit schemes
to the loan. The first option is borrow birr 260,000.00 mortgages to be paid within 8 years at
equal installment at rate 15% semiannually .the second &third option are to borrow birr
500,000.00 for 30 months at equal installment at rate 13% &birr 300,000.00 for a year at equal
installment at rate 12.5% semiannually respectively . The bank agreed with the HPTC &the loan
disbursed within additional service charge of birr 27,000.00 (one time borrowing cost for the
three loans)

 Required
Task 1.1 calculated the interest expense &the service charge at the end of first year

Task 1.2 calculate total loan repaid at end of the second year

Task1.3 demonstrated major document required to open bank account at NIB by the HPTC

Task 1.4 what is the advantages of credit facilities of the society

Project 2
ABERA is an employees of G3 furniture company earn a monthly net income of birr
15000.00,25%of the totals income is used to covers his fixed cost &the remaining income is
used to covers his variable cost expense &savings ,his savings is 15% of the variable expense .
The actual expense is 85% of budget variable expense but fixed cost remaining constant. if the
expense budget is deficient deducted from personal savings &if the surplus add to personal
savings his salary expected to increase by 25%for the month of February 2017 .

 Required
Task 2.1 prepare budgets performance report for the month of December 2016

Task 2.2 develop personal budgets for March 2017

Task 2.3 calculate total savings at the end of March 2017 &identify the related investment
opportunities

Task 2.4 identify the investment related risk of personal savings

Project 3
in the ARADA administrative city 25 individuals established medium scale enterprise (MSE)
that works trading ,service rendering &small scale manufacturing .the team management ,making
of products &service continues improvement in performance are the challenges of the
(MSE).assume that you are an employee of this enterprise &perform the following tasks which
are related to your jobs .

 Required
Task 3.1 identify your own role &responsibilities

Task 3.2 demonstrate your role in work effectively in the financial service sector

Task 3.3 demonstrate you in workplace meeting &discussions

Project 4
Assume the M, R YIBELTAL need start merchandising business in the next year (December 31,
2017) with a capital of birr 110,250. If the he deposits his money at bank, the bank will allow
him an interest rate of 5% per year

 Required

Task 4.1 calculate the amount that M,R YIBELTAL should today (January year 2016)

Task 4.2 calculate the amount of interest income at the end of December 31.2017)

Project 5

Perform tax accounting instruction. Under this project you are expected to perform the following
tasks base on the information provides KIYA PLC is a famous merchandising business which
was engaged in purchase selling of various products located at BISHOFUT town. as per
Ethiopian taxes regulation ,the PLC is a VAT registered &during the amount of December 2017
the following information are related to the business activities of KIYA PLC and assume that
profit taxes 30% &the PLC will pay tax to inland revenue on regular basis .

 Purchase of products for the month of December including VAT birr 1,15000.00
 Sale made during the month of excluding VAT birr 210,000.000
 Employee payroll taxes for the month of December birr 15,000.00
 Business income before taxes birr 90,000.00
 Excise taxes birr 6,000.00
 Required

Task 5.1 determine the indirect taxes liabilities of the business for the given month
Task 5.2 determine the direct taxes liabilities of business for the given month
Task 5.3 understanding how to present taxes to inland taxes authority
 Determine the total amount of taxes KIYA PLC will present to tax authority
 When does the indirect taxes will be presented to taxes authority
Project 6
XYZ company earns revenue of birr 1, 500, 00.00 VAT inclusive during the year. The company
paid 45,000.00 birr VAT during purchase. The company withhold birr 8,000 per month from
employee income tax and it also paid 30,000 birr yearly business profit tax to the tax authority .

 Required

Task 6.1 compute purchase price of the items

Project 7 the accounting records of AMLAK manufacturing PLC .shows the following accounts as of
January 1, 2024

Cash --------------------30,000.00

Building ----------------70,000.00

Supplies -----------------6000.00

Accounts payable ---------12,000.00

Prepaid insurance ----------2,000.00

Notes payable ----------------9,000.00

Equipment --------------------80,000.00

Assume that company wants to introduce a new products with the required capital of birr 360,
00.00. The company applied for credit at ADDIS INTERNATIONAL BANK Share Company in
order to finance the required capital. The banks accepted the application and agree with 12%
interest rate that will be repaid with equal installment semiannually for five years. The bank
charged birr 25,000.00 for facilitating the loan. The company estimates a profit of birr 90,000.00.

 Required
Task 7.1 calculate the amount of borrowing financed by ADDIS INTERNATIONAL BANK (AIB)
Task 7.2 determine the total expense related to the credit at the end of year one
Task 7.3 record the amount borrowed on the book of the company
Task 7.4 record the final disbursement of principle and interest on the books of the company
Task 7.5 calculate estimated profit rate of return