4 5805514475188521062

Level Three: Worksheet Four
Project One: Monitor and Control Accounts Receivable

Given is the balance sheet of Ashenafi, Berhane, and Dawit partners on Nov 3, 2012 the date the
partners decided to liquidate their partnership.
ABD Partnership
Balance Sheet
November 30, 2012
Cash --------------------------------------------------------Br 70,000
Non Cash Assets---------------------------------------------110,000
Total Assets-----------------------------------------------------------------------180,000
Accounts Payable-----------------------------------------54,000
Ashenafi’s Capital----------------------------------------50,000
Berhane’s Capital----------------------------------------34,000
Dawit’s Capital-------------------------------------------42,000
Total Liabilities and Capital----------------------------------------------------180,000
Between Nov 3 and 30, the non-cash assets were sold for Br 140,000. Ashenafi, Berhane, and
Dawit share income and losses based on their Beginning Capital.
Required: Prepare statement of partnership liquidation and all necessary journal entries to
record liquidation of the partnership.
 Assume that any partners who had debit balances in their capital accounts after loss
distributions immediately paid cash to the partnership.
Project Two: Process Financial Transactions and Prepare Financial Reports

Trans Ethiopia Corporation opened the year 2007, with the following trial balance information
Trans Ethiopia Corporation
Trial Balance
January 1, 2007
Accounts Debit Credit
Cash 100,000
Accounts Receivable 300,000
Land 600,000
Accounts Payable 240,000
Loan Payable 120,000
Capital stock 200,000
Retained Earning 440,000
Dividend
Revenues
Salaries Expense
Rent Expense
Supplies Expense
Interest Expense
Total 1,000,000 1,000,000
 January transactions are listed below:-
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Jan 2: Collected Br 40,000 on an open account receivable.
Jan 3: Purchased additional Track of Land for Br 80,000.
Jan 5: Provided services on account to a customer for Br 60,000.
Jan 7: Borrowed Br 48,000 on a term loan payable.
Jan 11: Paid Salaries of Br 12,000.
Jan 12: Provided services to a customer for cash Br 44,000.
Jan 15: Purchased (and used) office supplies on account Br 8,000.
Jan 17: The Company paid shareholders Br 10,000 dividend.
Jan 20: Paid rent of Br 6,800.
Jan 23: Paid salaries of Br 16,000.
Jan 24: Paid Br 64,000 on the open accounts payable.
Jan 29: Collected Br 200,000 on account receivable.
Jan 31: Repaid loan of Br 88,000.
Jan 31: Paid interest on loan of Br 2,400.
Required:
A. Prepare journal entries for January’s transactions
B. Post journal entries to the general ledger
C. Prepare a trial balance as of Jan 31, 2007
D. Prepare:
I. Income statement
II. Statement of retained earnings, and
III. Balance sheet as of Jan 31, 2007
Project Three: Bank Reconciliation Process

Saba’s Cash Book at 30th November 2007 showed an overdrawn position of Br 2,118 although
her bank statement showed only Br 3,630 overdrawn. Detailed examination of the two records
revealed the following:
a. The debit side of the cash book had been understated by Br 300. Error of recording of
collection of accounts receivable.
b. A check for Br 1,560 in favor of Z Suppliers Ltd had been omitted by the bank from its
statement, the check having been debited to another customer’s account.
c. A check for Br 182 drawn in payment of the telephone expense account had been entered
in the cash book as Br 128 but was shown correctly on the bank statement.
d. A check for Br 210 from customer on account having been paid into the bank was
dishonored and shown as such on the bank statement although no entry relating to the
dishonor had been made in the cash book.
e. The bank had debited a check for Br 126 o Saba’s account in error; it should have been
debited by them to Sheba’s account.
f. A divided of Br 90 on Kay’s holding of Ordinary shares has been paid direct to her bank
account and no entry made in the cash book.
g. Check totaling Br 1,260 drawn on 29th November had not been presented for payment.
h. Deposit in transit Nov 30 totaled Br 1,080.
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i. Interest amounting to Br 228 had been debited by the bank but not entered in the cash
book.
Required:
A. Prepare Bank Reconciliation for Saba Company at Nov 30, 2007.
B. Prepare the general journal entries necessary to bring the cash in bank into agreement
with the adjustment.
Project Four: Depreciation

Assume that Mesfin Industrial PLC Company purchased machinery for Br 100,000 on 2001
G.C. The machine has useful life of 5 years and salvage value Br 10,000 during the period of
Mesfin if from Jan 1 upto Dec 31.
Required: Using Double Declining Balance method, calculate depreciation expense for:
1. 2001 G.C
2. 2002 G.C
3. 2003 G.C
4. 2004 G.C
5. 2005 G.C
Project Five: Process Payroll

The following data are taken from Almeda Textile Plc for the month of Hidar, 2009:
Employee’s Name Basic Salary Overtime Worked Allowance
Letay Kidane 8,710 No 1,500/Position
1,000/House
Dawit G/Hiwot 1,250 6hrs Public Holiday (2.5)
Mesfin Bekele 4,242 6 hrs Evening (1.25) 40% of Basic
5 hrs Night (1.50) Salary/Hardship
Welday Niguse 2,308 8 hrs Weekend (2.00)
Additional Infromation:
1. All Employees are permanent and all worked 40 hours per week.
2. During Sane, 2007 E.C all workers have done as they have been expected.
3. WeldayNiguse monthly pay Br 550.00 from his salary for Credit Association.
4. Assuming that pension contribution 7% from Employee and 11% from Employer.
Required:
1. Prepare Payroll Register Sheet.
2. Prepare necessary journal entry for preparation of payroll and payments of deductions to
concerned party.
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Level Three: Worksheet Four

Project One: Monitor and Control Accounts Receivable

Project Two: Process Financial Transactions and Prepare Financial Reports

 January transactions are listed below:-

Project Three: Bank Reconciliation Process

Project Four: Depreciation

Project Five: Process Payroll

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