Example 2: The undermentioned balances form part of the ledger balances of All People's Assurance Co Ltd. as on 31 March 2020 Amount Amount RO 1470562 Annuities RO 29,420 Amount of life Insurance fund at the beginning of the year Claims by death Claims by maturity 76,980 56,420 9,450 2500 Premiums Expenses of management 210,572 19,890 Bonus paid in cash Bonus paid in reduction of premium Cash Claims admitted but not paid at the end of year Annuities due but not paid Capital Paid up 600 80,034 Commission 26,541 22,380 10,620 400,000 Consideration for annuities granted Interest dividends and rent Income tax paid on profits Fines collected 52.461 3,060 92 Government securities Other Assets Surrenders 1,490,890 509,110 21,860 Prepare Revenue Account and Balance Sheet after taking into account the following: (a) Claims covered under reinsurance RO 10,000 (b) Further claims initiated RO 8,000 (c) Further bonus utilized in reduction of premium RO 1500 (d) Interest Accrued RO 15,400 (e) Premiums outstanding RO 7,400