Question 1: Following is Trail Balance of Long life Assurance Company as on 31" March 2019 Debit Credit Amount RO in '000 3000 Amount RO in 000 550.000 Income tax paid on interest, dividends, and Life Assurance Fund opening balance 2500 Income tax paid Claims 200.000 18.500 10,000 By death 25,000 By maturity 17.000 Property at cost 57.000 Furniture and Equipment 4,000 Premium less reinsurance Outstanding claims at the beginning Consideration for Annuities Registration fees Interest, dividends and rents General reserves 25.000 20,000 5.000 Provision for taxation Share Capital 3000 Annuitics 15,000 Stationery 800 Cash at bank 39.600 Cash in hand Surrender value 500 Commission Expenses of management 40000 Other assets 1200 Loans on policies 35000 Investments 580,000 Government securities 3000 8000 832,000 Prepare Revenue Account and Balance Sheet after taking into account the following: (a) Claims less reinsurance outstanding at the end of year are 5,000 by death and RO 3,000 by maturity (b) Depreciation to be provided RO 1,000 on property and RO 160 on Furniture and equipment (c) Outstanding tax payable RO 2,000 (d) Expenses RO 3,000 are prepaid and annuities outstanding is RO 1,000 (e) Premiums outstanding RO 25,000 (1) Accrued interest , dividend and rent are RO 2500