Q1. From the following financial values, calculate: (3 marks)

1. Claims Ratio
2. Expense Ratio
3. Combined Ratio
4. Return on Revenue
5. Return on Assets

Particulars	Amounts ($)
Net Claim Incurred	175,000
Earned Contribution	405,000
Wakalah Fee	35,000
Commission Paid	2,200
Management Expense	22,000
Net Contribution	425,000
Gross Contribution	622,000
Total Profit for the Year	235,000
General Takaful Assets (Year 2010)	910,000
General Takaful Assets (Year 2011)	995,000

ANSWER:

2. Prepare necessary journal entries from the following transactions related with a Takaful product. (2 mark)

1. Contribution received from new participants $1,000.
2. An amount of $2500 received as contribution renewal from participant.
3. Advanced contribution received from new participants $2000.

ANSWER: