Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

41 Page You are provided with additional information about the company which has not been adjusted by the previous accountant. Claims have been recorded in

image text in transcribed
41 Page You are provided with additional information about the company which has not been adjusted by the previous accountant. Claims have been recorded in ledger accounts but outstanding claims at the end of the period 31st December 2019 have not been included which amounts to OMR 40,000; and outstanding premium expenses were OMR 15,000. The company provided additional depreciation on machinery and vehicles amounting to OMR 7,500. Interest received in advance is OMR 15,000. Lastly, it was observed that miscellaneous expenses paid in advance were OMR 7,500. You are required to prepare: a) Revenue account for National Life & General Insurance company and determine the dosing Life Assurance balance at the end of the year (5 Marks) b) Prepare Balance Sheet as on 31st December 2019 after making all the year-end adjustments. (3 Marks) c) National Life & General Insurance Company wants to offer house insurance services in Quriyat where we have received 1800 policies for house insurance. It is expected that, on average, 10% of the houses may meet with an accident in a year. The economic value of the loss suffered by the owner of each house is taken to be RO.50,000. Calculate the premium to be charged for insurance to the house owner. (2 Marks) 5 Page 41 Page You are provided with additional information about the company which has not been adjusted by the previous accountant. Claims have been recorded in ledger accounts but outstanding claims at the end of the period 31st December 2019 have not been included which amounts to OMR 40,000; and outstanding premium expenses were OMR 15,000. The company provided additional depreciation on machinery and vehicles amounting to OMR 7,500. Interest received in advance is OMR 15,000. Lastly, it was observed that miscellaneous expenses paid in advance were OMR 7,500. You are required to prepare: a) Revenue account for National Life & General Insurance company and determine the dosing Life Assurance balance at the end of the year (5 Marks) b) Prepare Balance Sheet as on 31st December 2019 after making all the year-end adjustments. (3 Marks) c) National Life & General Insurance Company wants to offer house insurance services in Quriyat where we have received 1800 policies for house insurance. It is expected that, on average, 10% of the houses may meet with an accident in a year. The economic value of the loss suffered by the owner of each house is taken to be RO.50,000. Calculate the premium to be charged for insurance to the house owner. (2 Marks) 5 Page

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of External Auditing

Authors: Brenda Porter, Jon Simon, David Hatherly

4th Edition

0470974451, 9780470974452

More Books

Students also viewed these Accounting questions