Insurance companies Accounting

1. Prepare Revenue Account in proper form for the year ended 31st March, 2012, from the following particulars related to Goma General Insurance Co. for the year 2011 – 2012:

Insurance companies Accounting

1. Prepare Revenue Account in proper form for the year ended 31st March, 2012, from the following particulars related to Goma General Insurance Co. for the year 2011 – 2012:

2. The following figures have been extracted from the books of New India Insurance Company Ltd. in respect of their Marine Business for 2011-2012: (Rs. in lakhs)

Prepare a Revenue Account and Profit and Loss Account for the year after taking into account the following further information:

a) All direct risks are reinsured for 20% of the risk.b) Claim a Commission of 25% on reinsurance ceded.c) Provide 25% Commission on reinsurance acceptedd) Market value of investments as on 31st March, 2012 is as follows:

a. Government Securities Rs. 105 lakhs.b. Shares Rs. 18 lakhs.

Adjust separately for each of these two categories of investments.

e) Provide 65% for Income tax.

3. The following figures have been extracted from the books of New India Insurance Company Ltd. in respect of their Marine Business for 2011-2012: (Rs. in lakhs)

Prepare a Revenue Account and Profit and Loss Account for the year after taking into account the following further information:

a) All direct risks are reinsured for 20% of the risk.b) Claim a Commission of 25% on reinsurance ceded.c) Provide 25% Commission on reinsurance acceptedd) Market value of investments as on 31st March, 2012 is as follows:

a. Government Securities Rs. 105 lakhs.b. Shares Rs. 18 lakhs.

Adjust separately for each of these two categories of investments.

e) Provide 65% for Income tax.