Rift Valley University
Department of Accounting and Finance
Practical COC Exam for Level III TVET program Students
Name__________________________ID.No.___________
Program: Regular Night Weekend
General Instructions:
You are given 4 different projects from 9 units of competencies with a total of 12 tasks
under the projects. All tasks under each project must be attempted.
Write your answers on the answer sheet with a clear and neat handwriting otherwise the
assessors will not check it.
Using cell phone is not allowed for calculation. Use the normal calculator.
Maximum Allowed Time is 150 minutes
Project One: Balance Cash Holding (Total Mark 10%)
The January bank statement sent by Addis Bank to Alpha Company shows Br. 5,000.00. Assume also
that on January 31, 2000, the Cash account of Alpha Company. shows a balance of Br. 4,262.00.The
accountant of Alpha Company has identified the following items:
1. A deposit of Br. 410. made after banking hours on Jan. 31 does not appear on the bank statement.
2. Two checks issued in January have not yet been paid by the bank:
Check No. 301 Br. 110.00
Check No. 342 607.00
3. A credit memorandum was included in the bank statement, which was for proceeds from collection
of an note receivable and interest revenue Br. 500 and 25 from Alpha Company respectively
4. Three debit memorandums accompanied the bank statement: Fee charged by bank for handling
collection of notes receivable Br.5; a check of Br. 50. received from a customer, ABC company, and
deposited by Alpha company was charged back as NSF; and service charge by bank for the month
of January amounts to Br. 12.00.
5. Check No. 305 was issued by Alpha Company for payment of telephone expense in the amount of
Br. 85 but was erroneously recorded in the cash payments journal as Br. 58.
Task 1: Prepare bank reconciliation for the month of January 31 for Alpha Company.
Task 2: Record the necessary Journal entry.
1
Project Two: Process Financial Transactions and Extract Interim Report (Total Mark 15%)
List of income statement accounts with their respective values for Abdi Merchandising firm for the year
ended December 31, 2024:
Gross Sales________________________________________. Birr 550,000
Sales Return and Allowances___________________________Birr 15,000
Sales discouns_______________________________________Birr 10,000
Beginning Merchandise Inventory(January 1, 2024)_________Birr 150,000
Total Purchase of Merchandise during July________________Birr 200,000
Ending Merchandising Inventory(December 31, 2024)_______Birr 100,000
Total Operating Expenses______________________________Birr 125,000
Interest Expense_____________________________________Birr 8,000
Assume that the company is expected to pay 30% of business profit tax. The board of director of the
company notice that it is decided to distribute 60% of Net Income after tax and distribute to the
shareholders as Dividend.
Required:
Task 1: Prepare income Statements for the year Ended December 31,2023.
Task 2: Calculate Business Profit Liability.
Task 3: Calculate dividend liability for the year.
Task 4: Calculate dividend payout.
Project Three: Handle Foreign Currency Transactions ( Total Mark 10%)
On April 2, 2023, Ahmed Company, an Ethiopian Company, ordered goods from a US supplier for
$40,000. The goods were shipped and invoiced on June 1, 2023, to be paid in US dollars on February
28,2023. The spot rates for US dollars are given as follows:
Selling Spot Rates (in Birr) Buying Spot Rates( in birr)
April 2, 2023------------------------------80.50 79.60
June 1, 2023-------------------------------81.10 80.00
June 30, 2023-----------------------------81.60 81.40
February 28, 2024------------------------81.30 81.20
Required:
Task 1. Record the necessary journal Entries as of June 1, 2023
Task 2. Record the necessary journal entries as of June 30, 2023
Task 3. Record the necessary journal entries as of February 28, 2024
Project Four: Process Payroll (Total Mark 15%)
TEBABER Industrial PLC manufactures a high –quality, fertilizer, which is used primarily by
commercial vegetable growers, the following partial payroll data were taken from the firm’s payroll
records for the month of Hidar 2015 E.C
S.No Employees Name Basic salary Allowance Over Time
2
1 Ali 7,000.00 1,200 600.00
2 Omar 4,000.00 900 300.00
3 Yusuf 11,000.00 1,100 1,400.00
4 Abdi 800.00 1,300 1,500.00
Total 22800.00 4,500.00 3800.00
Additional information
A monthly house allowance of each employee is 11% of their basic salary.
Pension contribution 7% from employees and 11% from the Employer.
The employees are responsible to pay 10% of their basic salary for credit association,
except Abdi
Mr. Yusuf is an Employer
Task 1. Prepare payroll of the company for the month of Hidar 2015 E.C
Task 2. Prepare payroll Register Sheet
Task 3. Make the necessary journal entry of the company for the month of Hidar 2015 E.C
