From the above information Prepare Revenue Account and based on the prepared revenue account answer the following ‘6’ multiple choice questions (Do not upload revenue account in moodle) The net premium received during the year will be: a. RO 107,936 b. RO 190,736 c. RO 109,736 d. RO 107,396 From the revenue account, life insurance fund at the end of the year will be: a. RO 716,492 b. RO 716,942 c. RO 761,942 d. RO 761,492 The total of both the sides of revenue account will be: a. RO 903,404 b. RO 904,303 c. RO 914,303 d. RO 914,404 Consideration for annuities RO 5,310 will be treated as: a. An expenses b. An income c. A liability d. An asset The opening balance of life insurance fund RO 765,281 will be recorded under: a. Credit side of the revenue account b. Liability side of the balance sheet c. Asset side of the balance sheet d. Debit side of the revenue account The amount of surrenders RO 10,930 will be recorded as: a. An income b. A liability c. An asset d.
|
Amount |
Amount |
||
|
RO |
RO |
||
|
Amount of life Insurance fund at the beginning of the year |
765,281 |
Annuities |
14,710 |
|
Claims by death |
38,490 |
Bonus paid in cash |
4,725 |
|
Claims by maturity |
28,210 |
Bonus paid in reduction of Premium |
1,250 |
|
Premiums |
105,286 |
Surrenders |
10,930 |
|
Expenses of management |
9,945 |
Claims admitted but not paid at the end of year |
40,017 |
|
Commission on reinsurance accepted |
13,271 |
Annuities due but not paid |
11,190 |
|
Consideration for annuities granted |
5,310 |
Income tax paid on profits |
1,530 |
|
Interest dividends and rent |
26,230 |
Fines collected |
46 |
Adjustments:
(a) Claims covered under reinsurance RO 5,000
(b) Further claims initiated RO 4,000
(c) Further bonus utilized in reduction of premium RO 750
(d) Interest Accrued RO 7,700
(e) Premiums outstanding RO 3,700
From the above information Prepare Revenue Account and based on the prepared revenue account answer the following ‘6’ multiple choice questions (Do not upload revenue account in moodle)
The net premium received during the year will be:
a.
RO 107,936
b.
RO 190,736
c.
RO 109,736
d.
RO 107,396
From the revenue account, life insurance fund at the end of the year will be:
a.
RO 716,492
b.
RO 716,942
c.
RO 761,942
d.
RO 761,492
The total of both the sides of revenue account will be:
a.
RO 903,404
b.
RO 904,303
c.
RO 914,303
d.
RO 914,404
Consideration for annuities RO 5,310 will be treated as:
a.
An expenses
b.
An income
c.
A liability
d.
An asset
The opening balance of life insurance fund RO 765,281 will be recorded under:
a.
Credit side of the revenue account
b.
Liability side of the
c.
Asset side of the balance sheet
d.
Debit side of the revenue account
The amount of surrenders RO 10,930 will be recorded as:
a.
An income
b.
A liability
c.
An asset
d.
An expenses
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