Question
From the following information of ABC Insurance co Ltd., a General Insurance Company , for the year ending 31st March 2021, Draw the Revenue statement
| From the following information of ABC Insurance co Ltd., a General Insurance Company , for the year ending 31st March 2021, Draw the Revenue statement clearly segregating into: |
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| a) Premium (Sch.1) b) Claims ( Sch.2) c) Commission (Sch.3) d) Operations (Sch.4) and the Net Operating Profit /Loss from the Insurance Business |
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| Particulars | Direct Business Rs. | Re Insurance Rs. |
| Premium Received | 9325000 | 1125000 |
| Premium Paid | . | 965000 |
| Claims paid during the year | 5900000 | 675000 |
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| DIRECT BUSINESS Rs. | RE INSURANCE Rs. |
| Claims payable 1st April 2020 | 833000 | 94,000 |
| Do do 31st March 2021 | 646000 | 65,000 |
| Claims Recd. | .. | 320000 |
| Claims payable 1st April 2020 | ... | 74,000 |
| Claims payable 31st March 2021 | . | 120000 |
| Expenses | 239400 | . |
| Commission: |
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| On Insurance accepted | 520000 | 75,000 |
| On Insurance ceded: | 119,200 | |
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| The following additional information is also given : |
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| 1. Management expenses includes Rs.229000 surveyors fees & Rs.162000 legal expenses for settlement of claims |
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| 2. Reserve for unexpired risk is to be maintained at 50% . The balance of reserve for Unexpired risk as on 1.4.2020 was Rs.4900000 |
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Computerized Accounting With Quickbooks 2018
Authors: James B. Rosa, Kathleen Villani
1st Edition
0763882674, 9780763882679
