Problem 3. From the following particulars of Baldwin Insurance Company, prepare Income Statement and Balance Sheet Particulars Debit Credit Premiums less re- 200,000 insurance Claims less re-insurance 100,000 Share Capital 200,000 Salaries to employees 50,000 Bonus to policy holders 50.000 Audit fees 10,000 Repairs and Rent 5,000 Depreciation 5.000 Commission income 50,000 Furniture 30,000 Agents balances 50,000 Investments 100,000 Premises 45,000 Loans to other insurance 5.000 companies Total 450,000 450,000 Page 22 of 24 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: Following is the information of MH insurance company engaged in General insurance as en 31 December 2019, find out the following Particulars Direct Insurance RO Re-insurance RO 1. Premium Received Receivable-01 Jan 2019 - 31 Dec 2019 20,00,000 1,00,000 1.50,000 3.20.000 20.000 30,000 2. Premium Paid Payable - 01 Jan 2019 31 Dec 2019 10,000 30,000 3. Claims Paid Payable-01 Jan 2019 31 Dec 2019 12.50,000 105,000 1.50,000 100.000 10,000 20.000 120.000 4. Claims Received Receivable-01 Jan 2019 - 31 Dec 2019 19.000 15.000 1.80,000 21.000 24.000 5. Commission: en insurance accepted on insurance ceded Other expenses and income Salaries RO 160,000, Rent rates taxes RO 15.000, Printing & stationery RO 20000, Interest dividend & rent received (net) RO 120.000, Legal expenses (including RO 10,000 in connection with the settlement of claims)RO 50,000, Income tax RO 10.000. Bad debts RO. 25.000 You are required to calculate Net pecmium received, Claims incurred, commission paid, income from investments, operating expenses and the amount of operating profit or less related to insurance business