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 A.M Best Co., A.M Bests Financial Strength Rating is an independent opinion of an insurers 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 companys 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 Sultanates 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.

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 which amounts to OMR 40,000; and outstanding premium expenses were OMR 15,000. The company provided additional depreciation on machinery and vehicles amounting to OMR 7,500. Interest received in advance is OMR 15,000. Lastly, it was observed that miscellaneous expenses paid in advance were OMR 7,500.

You are required to prepare:

a) Revenue account for National Life & General Insurance company and determine the closing Life Assurance balance at the end of the year

Particulars Amount OMR 168,750 71,250 52,500 450,000 475,000 145,000 Amount Particulars OMR 37,500 Premises 60,000 Salaries to employees 75,000 Miscellaneous expenses 187,500 Premiums less re-insurance 52,500 Claims by death 28,750 Annuities Bonus to policy holders Surrender Value Agents balances Consideration for annuities Depreciation Dividends Loans to other insurance companies Advertisement Share Capital Life assurance fund Investments 18,750 Interest and dividend 250,000 37,500 Statutory Reserve 375,000 Machinery and vehicles 465,000 Bonus in reduction of premium 210,000 Deposit at bank 147,500 187,500 15,000 240,000 Particulars Amount OMR 168,750 71,250 52,500 450,000 475,000 145,000 Amount Particulars OMR 37,500 Premises 60,000 Salaries to employees 75,000 Miscellaneous expenses 187,500 Premiums less re-insurance 52,500 Claims by death 28,750 Annuities Bonus to policy holders Surrender Value Agents balances Consideration for annuities Depreciation Dividends Loans to other insurance companies Advertisement Share Capital Life assurance fund Investments 18,750 Interest and dividend 250,000 37,500 Statutory Reserve 375,000 Machinery and vehicles 465,000 Bonus in reduction of premium 210,000 Deposit at bank 147,500 187,500 15,000 240,000