Case 1: (10 Marks) National Life & General Insurance Company has been providing financial security and peace of mind to its satisfied customers with a comprehensive range of Life & General Insurance Products. With a Good (B++) financial strength rating from AM Best Co., A.M Best's Financial Strength Rating is an independent opinion of an insurer's financial strength and ability to meet its ongoing insurance policy and contract obligations. The rating is based on a comprehensive quantitative and qualitative evaluation of a company's balance sheet strength, operating performance and business profile. Its ability to focus on local needs and deliver solutions appropriate to this need has today made NLGIC the Sultanate's market leader in the Life Insurance Industry and is also setting its standards in General Insurance Industry. You are appointed as an accountant in National Life & General Insurance Company and required to prepare the final accounts for the company. The following ledger balances were extracted from the books of the National Life & General Insurance Company SAOG as on 31 December 2019. Amount Amount Particulars OMR Particulars OMR Bonus to policy holders 37,500 Premises 168,750 Surrender Value 60,000 Salaries to employees 71,250 Agents balances 75,000 Miscellaneous expenses 52,500 Consideration for annuities 187,500 Premiums less re-insurance 450,000 Depreciation 52,500 Claims by death 475,000 Dividends 28,750 Annuities 145,000 Loans to other insurance 18,750 Interest and dividend 250,000 companies Advertisement 37,500 Statutory Reserve 147.500 Share Capital 375,000 Machinery and vehicles 187.500 Life assurance fund 465,000 Bonus in reduction of premium 15,000 Investments 210,000 Deposit at bank 240,000 4 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 Case 1: (10 Marks) National Life & General Insurance Company has been providing financial security and peace of mind to its satisfied customers with a comprehensive range of Life & General Insurance Products. With a Good (B++) financial strength rating from AM Best Co., A.M Best's Financial Strength Rating is an independent opinion of an insurer's financial strength and ability to meet its ongoing insurance policy and contract obligations. The rating is based on a comprehensive quantitative and qualitative evaluation of a company's balance sheet strength, operating performance and business profile. Its ability to focus on local needs and deliver solutions appropriate to this need has today made NLGIC the Sultanate's market leader in the Life Insurance Industry and is also setting its standards in General Insurance Industry. You are appointed as an accountant in National Life & General Insurance Company and required to prepare the final accounts for the company. The following ledger balances were extracted from the books of the National Life & General Insurance Company SAOG as on 31 December 2019. Amount Amount Particulars OMR Particulars OMR Bonus to policy holders 37,500 Premises 168,750 Surrender Value 60,000 Salaries to employees 71,250 Agents balances 75,000 Miscellaneous expenses 52,500 Consideration for annuities 187,500 Premiums less re-insurance 450,000 Depreciation 52,500 Claims by death 475,000 Dividends 28,750 Annuities 145,000 Loans to other insurance 18,750 Interest and dividend 250,000 companies Advertisement 37,500 Statutory Reserve 147.500 Share Capital 375,000 Machinery and vehicles 187.500 Life assurance fund 465,000 Bonus in reduction of premium 15,000 Investments 210,000 Deposit at bank 240,000 4 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
