Accounting coc level 1-4 information⚫️⚪️, [5/20/2020 10:10 AM]
Interest expense for 1st year
1st option interest=7,500+6,875= 14,375
2nd option interest=12,500+10,000=22,500
3rd option interest=9,750+4,875=14,625
4th option interest=8,000+5,333.33=13,333.33
Interest expense for 1st year--------64,833.33
Add other charges-------------------- 21,000
Total -------------------------------------85,833.33
Required 2
Total loan repaid at the end of second year
1st option repaid=8,333.33*4=33,333.32
2nd t option repaid=50,000*4=20,000
3rd option repaid=75,000*2=150,000
4th option repaid=66,666.67*3=200,000
Total loan repaid at the end of second year---583,333.32
Project 23
Ato tola open new account by required capital of birr 300,000.ato total deposit birr 2,000 per month
starting from January 2014 up to December 2014 awash bank.ato total collect interest from awash bank
after one year birr 3,000.on January 2015 ato tola gave loan proposal to awash bank to fulfill the deficit
amount at 10% interest rate and management fee 5% of the total loan amount equally distributed for 3
years and repaid quarterly at equal installment for 3 years.
Task 1.1.calculate deficit capital of ato tola.
Task 1.2.calculate total interest and service charge at the end of 1st year.
Answer
Task 1.1.the deficit amount= (300,000-27,000)=273,000
Installment payment=273,000/12=22,750
Task 1.2.interest and service charge at the end of 1st year.
I1=prt=273,000*10%*1/4=6,825
Outstanding balance=273,000-22,750=250,500
I2=prt=250,500*10%*1/4=6,262.5
Outstanding balance=250,500-22,750=227,750
I3=prt=227,700*10%*1/4=5,692.5
Outstanding balance=227,700-22,750=205,000
I4=prt=205,000*10%*1/4=5,125
Outstanding balance=205,000-22,750=182,250
.Total interest amount at the end of 1st year is
Total interest=6,825+6,262.5+5,692.5+5,125=
.Service charge=0.05*273,000=13,650 for 1st year.
Project 24
ABC company and XYZ company are vat registered sole proprietorship companies in ethiopia.ABC
company is manufacturing company while XYZ is a whole seller.ABC company purchase raw materials
from vat register supplier with 250,000 birr including vat and resold the finished product after
processing to xyz company for birr 320,000 before vat,XYZ company later on resold the product to
retailers for birr 450,000 vat inclusive. Expense and employment income tax paid are birr 50,000and
12,000 for ABC company and 40,000 and 11,5000 vat inclusive.
Task 1.1.calculate direct and indirect tax for both companies.
Given
ABC COMPANY XYZ COMPANY
Purchase --------------250,000(vat inclusive) 320,000(before vat0
Sell---------------------320,000(before vat) 450,000(including vat)
Employment
Income tax-----------12,000 11,500
Expense ---------------50,000 40,000
Input vat of ABC company=(250,000 *15/115)=32,608.7
Output vat of ABC company=(320,000 *15/100)=48,000
Input vat of xyz company=(320,000 *15/100)=48,000
Output vat of xyz company=(450,000 *15/115)=58,695.65
Indirect tax for ABC company=out put vat – in put vat
=48,000 – 32,608.7=15,391.3
Indirect tax for xyz company =58,695.65-48,000=10,695.65
Task 2. Compute direct tax.
ABC company
Income statement
For the year ended
Revenue------------------------------- 320,000
Less cost of good sold--------------217,391.4
Gross profit --------------------------102,608.6
Less expense -------------------------50,000
Income before tax------------------52,608.6
BPT –(52,608.6*20%)-3630------6,891.72
So direct tax for ABC company =BPT + employment income tax
=6,891.72 + 12,000=18,891.72
Accounting coc level 1-4 information⚫️⚪️, [5/20/2020 10:10 AM]
Inst = 36,000-36,000= 0
Total Interest Expense= 99,000
Journal entries
Task 3.cash---------------------360,000
Note payable--------------360,000
Task 4.note payable---------------36,000
Cash--------------------------36,000
1. National bank Ethiopia increases interest 11% to 13% on borrowing and 5% to 6% on saving if xyz
company bassoons br 100,000
a/ record the interest expense to be paid offer one year.
.interest= 100,000x 13 x1 = 13000 . Interest expense
100 Interest payable /13000
Project 4
4. The person earned 425 Br for Weekly.
• Rent cost 250 Br. Per month
• Insurance 150 Br.
• Transport 100 Br.
• Maintenance 50 Br.
• Communication cost 50 Br.
• Food cost 140 Br
Slam sew plans to save for the following cost for 2013
The account held to save commercial bank of Ethiopia
Transport 5%
Rent cost 2%
Communication cost 15%
Food cost 1%
Maintenance 2%
A. Monthly Income =525 x4= 2100
Annual cost of January =2100x 12= 25,200
B. Annual rent cost of January =2012= 250x 12= 3000
Budget for the month of Jan 2013= =250-(250x10%)=225
Annual budget for Jan 2013= 225x12= 2700
C. Annual insurance premium of Jan 2012= 150x12 =1800
The same for Jan 2012 band 2013.
D.Annual transportation expense Jan 2012= 100x12 =1200
Budget for the month of Jan 2013-100-(100x3%)= 70
Annual budget for Jan 2013=70x12 =840
E.Annual Maintenance cost of Jan 2013 =60x12 =720
Budget for the month of Jan 2013=60-(60x15%)=5
Annual budget for Jan 2013= 51x12 =612
F.Annual Communication cost of Jan 2012=50x12=600
Budget for the month of Jan 2013=50-(50x50%)=25
Annual budget for Jan 2013= 25x12=300
G.Annual of food expense of Jan 2012=540x12= 1680
Budget for the month of Jan 2013= (140—(140x15%)=119
Annual budget for Jan 2013=119x12=1428
Item C. For M.T 2012 Annual cost of 2012 B.F.M.J2013 Annual of 2013
Basic salary 2100 25200 2100 25200
Rent cost 250 3000 225 2700
Insurance premium 150 1800 150 1800
Transportation esp. 100 1200 70 840
Maintance cost 60 720 51 612
Communication cost 50 600 25 300
Food expense 750 1680 119 1428
Total expense 750 9000 640 7680
Saving 1350 16200 1460 17520
Item C. For M.T 2012 Annual cost of 2012 B.F.M.J2013 Annual of 2013
What is the percentage of increase in saving for the year. increasing in saving =17520- 16200 x 100
= 0.081x 100
16200
=8.15 or 8%
Project 6
January month febuary month
Given .BS = 5000
V.e = 30% of b.s BS increase 10%
R .amount=fe+ps V.e increase 10%
A.c = 80% of v.e
Ps=15%0f fe
ve= 5000x30%
Ve=1500
R.Amount = 5000- 1500
= 3500
3500= fe+ps
3500=f.e+1.05fe
3500/1.05 = 1.05x/1.05
FE= 3,333.33
Ato Solomon
Personal Budget
For December month
Item Budget
B.S 5000
V.e 1500
Fe 3333.33
p.s 166.67
Ato Solomon
Performance budget
December
Item Budget Actual D/t
B.S 5000 5000 0
V.e 1500 1200 300
Fe 3333.33 3333.33 0
p.s 166.67 466.67 300
B.s = 5000x10 % 500+5000 =5500
V.e = 1500x10% +1500 =1650
F.e =3333.33
P.s= 516.67
Ato Solomone
Personal Budget
for January
B.S 5500
V.e 1650
Fe 3333
p.s 516.67
