.(a) Ahmed insurance company requires you to calculate the amount of claim, to be entered in its profit and loss account and the journal entries relevant for the same. The details of which are stated below:

Claims paid during the year 2015 OMR 3,750,000

Claims outstanding at the beginning OMR 640,000

Claims outstanding at the end OMR 380,000

Reinsurance claim during the year OMR 440,000

Legal expenses on claims OMR 45,000

Claims intimated but not accepted at the year end OMR 325,000

(b)From the following relating to XYZ bank ascertain the profit balance carried over to the balance sheet.

Particulars	OMR
Net profit for the year	128,000
Profit brought forward from previous year	120,000
Transfer to statutory reserve	25%
Transfer to other reserves	10%
Transfer to proposed dividend	20,000