Level II Model Coc

Project one
MDF 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
Task 1.3 identify relevant document to taxation
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
Task 1.3
 Sales invoice
 Purchase invoice
 Payroll sheet
 Tax return statement
 Vat invoice
 Withholding invoice
 Good transit voucher

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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/
Task 2.1 calculate interest expense and other service charge at the end of first year
Task 2.2 calculate total loan repaid at the end of second year
Task [Link] document required to open bank account at AIB by the company
Task 2.4. what is the advantage of credit facility
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 =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
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Tin number
Memorandum and article of association
Letter request to operate an account that signed by designed person
Designed person signatory
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
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
Answer
Task 3.1
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

Ato abebe
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 _
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 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

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
Variable cost 11,739.13
Total expense 16,239.13
Personal saving 1760.87

Task 3.3
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
11739.13*.85=9978.26
actual
budget
9978.26+4500=14478.26
18000-14478.26=3521.74

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Task 3.4
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
Project four
In the Arada City Administrative 25 individual’s establshed medium scale Entreprise (MSE) that
works on trading, service trading and smail scale manufacturing. The team management,
marketing of the product and service and continous improvement in perforamance are the
chalenge of the MSE. Assume that you are an employee of this entrprise and perfom the
following tasks which are related to you jobs.
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

Answer
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
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
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 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
Task 4.3

Demonstrate your role in workplace meeting Discussion

 Attend team meeting on time
 Express own opinions clearly and those are listed to without interruption
 Conduct work place interaction in courteous manner
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
Close 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
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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

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