The following balances were extracted from the books of Ulinzi Insurance Company Ltd. As at 31 March 2000:

 

 

 

            The following additional information is available:

 

            1.          Estimated liability in respect of claims outstanding at the close of the year was as follows:

                        Fire Sh.39,000                Marine Sh.141,000

 

            2.          The following provisions are to be made:

Sh.150,000 survey expenses for marine insurance claims

Sh.300,000 for taxation

 

An additional reserve of 10% of the net premium was made for the unexpired risks in the case of fire insurance in addition to the balance brought forward.

 

In respect of fire insurance, a reinsurance premium paid Sh.450,000, a claim of Sh.150,000 covered by insurance and a commission at 5% on reinsurance ceded have still to be accounted for.

 

The market value of the investments is Sh.21,375,000.

 

The reserve for unexpired risk should be 100% of the premium less reinsurance in marine business.

 

            Required:

 

The revenue accounts and profit and loss account for the year ended 31 March 2000 and a balance sheet as at that date.                                                            

                                                                                                           

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Status NEW Posted 13 Dec 2017 02:12 PM My Price 10.00

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