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20,07,900 20,07,900
You are required to prepare companys Revenue account for the year ended
31.3.2016 and its balance sheet as on that date taking the following matters into
considerations.
(i) Management expenses due Rs.120
(ii) Interest accrued Rs.11,580
(iii) Claims admitted but not paid Rs.5,580
(iv) Premiums outstanding Rs.7,200
The following Trial Balance was extracted from the books of a Insurance Co. Ltd as on
31st march 2010
Particulars Debit Credit
Dividend paid 18,000
Bonus in reduction of premium 37,800
Claims paid 2,36,400
Commission 11,160
Management expenses 38,760
Mortgage in India 5,90,640
Freehold premises 59,160
Investments 27,66,000
Loans on polices 2,08,320
Cash on deposits 32,400
Cash on current account 8,760
Surrenders 8,400
Medical fees 8,400
Annuity 12,000
Paid up capital (12,000 shares@ Rs.10) 1,20,000
Life insurance fund balance (1.4.2009) 35,66,760
Premium less reinsurance premium 1,93,800
Interest, dividend and rent 1,43,640
Consideration for annuities granted 12,000
40,36,200 40,36,200
Prepare the revenue account and balance sheet after taking into account following
adjustments:
1. Claims covered under reinsurance Rs.96,000
2. Management expenses due Rs.36,000
3. Claims outstanding Rs.12,000
4. Premium outstanding Rs.6,000