Addis Ababa Foam

Q1. Addis Ababa Foam Factory pays the salary of its employees according to the Ethiopian Calendar month to the Federal Government Tax Authority. The forth-coming data relates to the month of Ginbot, 2005.

Ser. No.
Name of Employee
Basic Salary
Transport Allowance
OT hours worked
Duration of OT work
Basic Salary per hour

01
Lami bekele
4,800
900
10
Up to 10 p.m
30

02
Hanna shileshi
1,920
–
8
10p.m to 5 a.m
12

03
Abenet melese
2,400
–
6
Weekly rest days
15

04
Zewdensh alemu
2,160
600
–
–
13.50

05
Teferra negash
1,440
100
10
Public Holidays
9

N.B. Note that management of the factory usually expects a worker to work 40 hours in a week and during Ginbot 2005 all workers have done as they have been expected. Besides, all workers of this factory are permanent employees except Hanna Shileshi ; Abenet Melese agreed to have a monthly Br. 300 be deducted and paid to the Credit Association of the Factory as a monthly saving.

Required: Based on the above information

Prepare a payroll register Sheet for the factory for the month of Ginbot, 2005.
Record the payment of salary as of Ginbot 30, 2005 using Ck. No. 41 as a source document.
Record the payroll taxes expense for the month of Gibot, 2005. Memorandum no. 10.
Record the payment of the claim of the credit Association of the factory that arises from Gibot’s payroll assuming that the payment was made on Sene 1, 2005.
Assuming that the withholding taxes and payroll taxes of the month of Ginbot, 2005 have been paid on Sene 5, 2005 via Ck. No 50, record the required journal entry.

Q2. Write the difference between Direct and indirect tax

Q3. The following information is obtained from Addis Ababa shoe Factory Addis Ababa Shoe factory, VAT registered PLC, purchased 10,000 kg of processed leather from AWASH leather factory at VAT exclusive price of birr 690 per kg. It has also imported chemicals and other raw materials worth birr 400,000 (C.I.F and other duty excluding VAT) for shoe making in the month of Hidar. Addis Ababa shoe factory exported international standard shoes to Canada and India worth birr 3 million and sold 20,000 pairs of shoes at VAT exclusive price of birr 300 for each pairs of shoes to local market.

        Required: Determine VAT payable (VAT refund) for the period (4 pts)