4 6048443301533583445

Project 1 maintaining and accounting of customers’ accounts
DKY Is a financial consulting company maintains current bank account in united bank and borrowed
from bank. The company provides financial consulting services to ten saving and credit association in
Addis on credit management. The saving and credit association provides trainings to individuals and the
society on personal savings.
Task 1.1 Assuming that you are bank clerk of united bank, what is your role in opening and maintaining
bank account of DKY?
Task 1.2 Identify the advantages of personal saving and related investment risks?
Task 1.3 The National bank raised borrowing interest rate from 12% to 13% and saving interest rate
from 5% to 6 % .If DKY borrowed birr 100,000.Record the interest expense to be paid after one year?
Task 1.4 Identify the intermediaries of financial system in Ethiopia
Project 2. Develop understanding of taxation
EDY company purchased office equipment for birr 115,000 including VAT. The company employed five
employees to provide customer services. The employment income tax is birr 12,000 per month. During
the year 2016 the company earned birr 448,500 including VAT by providing services. Business income or
profit tax is birr 30,000.
Task 2.1 Calculate direct and indirect tax liabilities for the year 2016.
Project 3 Personal plan
The following data is given for personal income and expenditure for Abebe Abera from July to
December. The difference between total income and expenditure is personal saving.
Six month income and expenditure Abebe Abera.
Description July August September October November December Total
Clothing 1,377 - 1,377 - 1,660.50 - 4,414.50
Food and other 6,120 6,480 6,120 7,038 7,380 7,038 40,176
consumption
Monthly house 2,295 2,430 2,295 2,639.25 2,767.50 2,639.25 15,066
rent expense
Overtime work 300 - 300 345 - 345 1,290
Part time work - 1,200 - - 1,200 - 2,400
Salary 15,000 15,000 15,000 17,250 17,250 17,250 96,750
Transport expense 765 810 765 880 923 880 5,023
Tuition fee 1,530 1,620 1,530 1,759.50 1,845 1,759.50 10,044
Utility expense 306 324 306 351.90 369 351.90 2008.80
Personal savings
1
Task 3.1 prepare the personal budget using data listed on the above table
Task 3.2 Identify the business opportunity related personal saving of Abebe
Task 1.1
1. Identify customer account needs
2. Open customer accounts
3. Process transaction
4. Transfer or close customer account
5. Provide customer service
6. Process basic financial transaction
7. Administer the transaction process
Task 1.2
Advantages of personal saving
 It used for future investment
 It bear interest
 To cover unexpected expenditure
 To use for future plan(education,housing,etc)
 To increase country amount of saving
Related investment risk
 Inflation/deflation
 Compotators
 Bankruptcy
 Supply shortage
 Customer character
 Technology change
 Government policy change
Task 1.3
Interest =PRT=100,000*.13*1=13,000
Interest expense----------13,000
Interest payable--------------------------------13,000
2
Task 1.4
 Banks
 Insurance
 Microfinance
 Debtor
 Credit and saving Union
 National bank of Ethiopia
Task 2.1
Employment income tax -=12,000*12=144,000
Profit tax =30,000
Total direct tax liability =174,000
Indirect tax
Input VAT=115,000/1.15*.15=15,000
Output VAT=448,500/1.15*.15=58,500
VAT liability =58,500-15,000=43,500
Task 3.1
Description July August Septembe October November December Total

r
Overtime work 300 - 300 345 - 345 1,290
Part time work - 1,200 - - 1,200 - 2,400
Salary 15,000 15,000 15,000 17,250 17,250 17,250 96,750
Clothing 1,377 - 1,377 - 1,660.50 - 4,414.50
Total income 15,300 16,200 15,300 17,595 18,450 17,595 100,440
Food and other consumption 6,120 6,480 6,120 7,038 7,038 7,038 40,176
Monthly house rent expense 2,295 2,430 2,295 2,639.25 2,767.50 2,639.25 15,066
Transport expense 765 810 765 880 923 880 5,023
Tuition fee 1,530 1,620 1,530 1,759.50 1,845 1,759.50 10,044
Utility expense 306 324 306 351.90 369 351.90 2008.80
Total expenditure 12,393 11,664 12,393 12,668.65 14,945 12,668.65 76,732.30
Personal savings 2,907 4,536 2,907 4,926.35 3,505 4,926.35 23,707.70
Task 3.2
 Coffee and tea
 Cafeteria business
 Internet house
 Car wash

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Project 1 maintaining and accounting of customers’ accounts

Description July August Septembe October November December Total

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