Adjustments (a) an outstanding claim to be paid RO 5,000 (b) an outstanding premium of RO 4,000 to be collected for the current period (c) an additional depreciation of RO 2,000 to be provided on furniture (d) audit fees paid in advance RO 2,000 (e) commission income received in advance RO 5,000

Problem 3. From the following particulars of Baldwin Insurance Company, prepare Income Statement and Balance Sheet Particulars Debit Credit 200,000 Premiums less re- insurance Claims less re-insurance 100,000 200,000 Share Capital Salaries to employees Bonus to policy holders 50,000 50,000 Audit fees 10,000 5,000 Repairs and Rent Depreciation 5,000 Commission income 50,000 Furniture 30,000 Agents balances 50,000 Investments 100,000 Premises 45,000 5,000 Loans to other insurance companies Total 450,000 450,000