RIFT VALLEY UNIVERSITY KARA ALO CAMPUS
TVET PROGRAM
Ministry of Labor and skills
Sector: - Labor and Social Affairs
Sub-sector: Business and Finance
Occupation: Accounting and Finance - Level IV
Institutional Assessment on Accounting and Finance Level-IV
Prepared By Accounting & Finance Department
March 30, 2025
Candidate Assessment Package
Candidate Name
Candidate Registration /ID
Assessment Center
Name of Training Provider
Candidate Signature
The assessment covers the following units of competence
LSA ACF2 03 1221 Develop Understanding of the Ethiopian Financial System and Markets
LSA ACF2 04 1221 Develop Understanding of Taxation
LSA ACF2 05 1221 Prepare and Use a Personal Budget and Savings Plan
LSA ACF2 06 1221 Develop Understanding of Debt and Consumer Credit
LSA ACF3 01 1221 Process Financial Transactions and Extract Interim Reports
LSA ACF3 02 1221 Administer, Monitor and Control General and Subsidiary Ledgers
LSA ACF3 07 1221 Balance Cash Holdings
LSA ACF3 11 1221 Handle Foreign Currency Transactions
LSA ACF3 08 1221 Process Payroll
LSA ACF3 09 1221 Prepare Financial Reports
LSA ACF3 10 1221 Calculate and Administer Taxes, Fees and Charges
LSA ACF4 01 1221 Prepare Financial Statements for governmental and not for profit Entities
(NFP)
LSA ACF4 03 1221 Apply Principles of Professional Practice to Work in the financial service
sectors
LSA ACF4 04 1221 Prepare Financial Reports based international financial report standard
(IFRS)
LSA ACF4 05 1221 Process Business Tax Requirements
LSA ACF4 09 1221 Establish and Maintain a Cash and Accrual Accounting System
LSA ACF4 08 1221 Maintain Inventory Records and valuation system
LSA ACF4 07 1221 Produce Job order and Process Costing System
LSA ACF4 12 1221 Perform Auditing and Reporting
LSA ACF4 11 1221 Provide Management Accounting Information
Candidate’s Package Accounting & Finance Level-IV (March 2025)
Occupational Code: LSA ACF4
Project Information
Given the necessary tools, equipment and information, the candidate is expected to
perform the following 5 projects.
The assessor should ask oral questions on which she/he is not satisfied by the candidate’s
performance.
Assessment Venue: Well-equipped or real work place.
Total Time for all projects: 3:45Hrs
Project 1: Calculate Material and labor costs
The following data pertain to the operations of Dire Dawa textile factory, a manufacturer of
clothes.
December 31, December 3, 2023
2022
Inventories
Finished goods Birr 2,000 Birr 25,000
Raw material 147,000 136,000
Work in process 118,000 122,000
Raw material Purchase 284,000
Purchases ret. And allow. 5,000
Direct Labour 236,000
Indirect material used 47,000
Indirect labour 84,000
Other Manufacturing Overhead 157,000
Sales 1,246,000
Selling expense 265,000
Administrative expense 87,000
Candidate’s Package Accounting & Finance Level-IV (March 2025)
Instructions: under this project the candidate is expected to perform the tasks based on
the information provided.
Task1. Calculate Total materials available for use
Task2. Calculate cost of raw material used during the year
Task3. Calculate Total manufacturing cost of the year
Task4. Calculate prime cost & conversion cost
Task5. Calculate Cost of goods manufactured
Candidate’s Package Accounting & Finance Level-IV (March 2025)
Project 2: Process Payroll
Total time for the project: 1 hour
Project Information
The following data is obtained from DH Gada consultancy from personal Office
No Employee name Year of Reasons for Salary Average Daily
services terminations wages of the
last week of
service
1 Yehone Tilahun 10 Reduction of workers 4800 160
2 Chaltu Abdi 8.5 Constructive Dismissal 5400 180
3 Mahillate Million 41 Employee personal 5880 196
reason after giving
appropriate notice
4 Dachas Yohanis 28 Employee personal 1320 44
reason without giving
appropriate notice
Instructions: under this project the candidate is expected to perform the tasks based on
the information provided.
Task1: Determine the total payment of each employee will receive up on termination
of their contract as a form of severance pay or compensations.
Task2: Record the total severance payable to employees
Task3: Record the total payment of severance to employees
Candidate’s Package Accounting & Finance Level-IV (March 2025)
Project 3: Process Financial transactions and Prepare Financial report
Total time for the project: 1Hr
Project information
Ethiopian JJ Corporation opened the year 2022 G.C. with the following trail balance
information
Ethiopian JJ Corporations
Trial Balance
Jan. 1. 2022
Accounts Debit Credits
Cash 200,000
Account Receivable 400,000
Merchandise inventory 354,000
Land 700,000
Account Payable 340,000
Loan Payable 220,000
Capital Stock 554,000
Retained earnings 540,000
Dividend
Revenues
Salaries Expense
Rent Expense
Supplies Expense
Interest Expense
Total 1,654,000 1,654,000
Candidate’s Package Accounting & Finance Level-IV (March 2025)
Additional information
Ethiopian JJ Corporation has the following data for the year of 2022 G.C.
Jan. 2022 G.C Dec. 2022 G.C
Account Receivable 520,000
Merchandise Inventory 262,000
Accounts Payable 338,000
Accrued Salary 234,000 145,000
Unearned sales 37,000 38,000
Prepaid expenses 31,000 26,000
Cash collected from customers during the period was 430,000
Cash paid for suppliers during the period was 64,000
Cash paid for operating expense during the period was 244,000
Required
Task1: Calculate the total sales income during the period Using both accrual and cash
basis of accounting
Task2: Calculate the total purchases during the period Using both accrual and cash basis
of accounting
Task3: Calculate the total cost of goods sold during the period Using both accrual and cash
basis of accounting
Task4: Calculate the total Operating expenses during the period Using both accrual and
cash basis of accounting
Task5: Prepare Financial Statements (Income statements & Retained Earnings) use
accrual basis of accounting.
Candidate’s Package Accounting & Finance Level-IV (March 2025)
Project 4: Record budget for governmental and not for profit
organizations
Total time for the project: 1Hr
Scenario 1
In year 2022 Addis Ababa city Fire extinguisher department put an order to purchase
accessory materials which was Birr 3,000,000 to be used by the fire department. According
to the agreement half of the material ordered riches the department within the year and
bill is received for part payment purchases.
Instructions: Under this project the candidate is expected to perform he following tasks
based on the information provided,
Task1: Record the purchase order
Task2: Record the part payment of the accessories received
Scenario 2
On July 1, 2006 the city council approved and adopted the budget for the year as
follows:
Estimated Revenue Appropriations
Property Tax 5,000,000 General government 2,000,000
Interest and Penalty 3,000,000 Public Safety 2,500,000
License and Permits 500,000 Health and Welfare 3,500,000
Total 8,500,000 Total 8,000,000
Task1: Calculate fund balance
Task2: Record the approved governmental and not for profit budget in general and
subsidiary ledger
Candidate’s Package Accounting & Finance Level-IV (March 2025)
Project 5: Process Inventory System
Total time for the project: 1Hr
Project information
In its beginning inventory on Jan 1, 2022, Muntaz Stationary had 120 units of merchandise
that cost Br. 8 per unit. The following transactions were completed during 2022.
February 5 Purchased on credit 150 units of merchandise at Birr 10 per unit.
February 9, Returned 20 detective units from February 5 purchases to the supplier
June 15, Purchased for cash 230 units of merchandise at Birr 9 per unit
September 6, Sold 220 units of merchandise for cash at a price of Birr. 15 per unit. These
goods are: 120 units from the beginning inventory and 100 units for February purchases.
December 31, 260 units are left on hand, 30 units from February 5 purchases
Instruction: Under this project the candidate is expected to perform the tasks based on the
information provided.
Task1: Prepare general journal entries for Muntaz Stationary to record the above
transactions and adjusting and closing entry for Merchandise inventory on December 31,
by using Periodic Inventory system.
Task2: Prepare general journal entries for Muntaz Stationary to record the above
transactions and adjusting and closing entry for Merchandise inventory on December 31,
by using Perpetual Inventory system.
Candidate’s Package Accounting & Finance Level-IV (March 2025)
