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:

Prepare a Revenue Account and Profit and Loss Account for

the year after taking into account the following further
information:
a)
b)
c)
d)

All direct risks are reinsured for 20% of the risk.

Claim a Commission of 25% on reinsurance ceded.
Provide 25% Commission on reinsurance accepted
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.

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)

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)
b)
c)
d)

All direct risks are reinsured for 20% of the risk.

Claim a Commission of 25% on reinsurance ceded.
Provide 25% Commission on reinsurance accepted
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.