The following balances were extracted from the books of Exotic Marine Insurance Company Ltd. on 30 April 2001.

Sh.

Premium less re-insurance Commission on direct business Commission on re-insurance ceded Commission on re-insurance accepted Depreciation Loss on sale of investment Claims paid less re-insurance Claims recovered under re-insurance not adjusted Directors remuneration Interest and dividends (net) not relating to any fund Reserves for unexpired risk on 1 May 2000 Additional reserve on 1 May 2000 Claims outstanding on 1 May 2000 Claims outstanding on 30 April 2001 Tax deducted from interest and dividends Salaries Rent and rates Postage and stationery Surveyors fees and legal charges for settlement of claims Profit and loss appropriation account 1 May 2000

14,791,500 660,000 78,000 57,000 96,000 150,000 7,560,000 300,000 450,000 412,500 11,700,000 1,170,000 567,000 687,000 120,000 960,000 87,000 129,000 300,000 2,925,000

The following additional information is available:

Reserves for unexpired risks to be maintained at 100% of the net premium income.

Additional reserves of 10% on the said premium is also to be maintained.

Provision for taxation to be made for the year Sh. 912,450

Investment reserve to be increased by Sh. 225,000.

Required:

Revenue account for the year ended 30 April 2001. (12 marks)

The profit and loss account for the year ended 30 April 2001 (8 marks