Question

1 Normal 1 No Spac... Heading 1 Adbuce AdBA Heading 2 Title Font is Paragraph GOLD Styles b) Balance Sheet with necessary notes as on 31st March 2018 (5 Marks) Case 3: (10 Marks ) Himayati Life Insurance is underwritten by AXA Insurance Gulf B.S.C., which is one of the largest insurance companies in the world. Himayati Life Insurance is offered to all customers. The scheme offers two plans - Basic and Premium; both insurance plans offer comprehensive protection, 24 hours a day, 365 days a year, the world over. You are appointed as an accountant in AXA Insurance Company and required to prepare the final accounts for the company. The following balances were extracted from the books of the AXA Life Insurance as of 31 March 2019. Amount OMR Amount OMR Particulars Loans to other insurance companies Bad debts Share Capital 7.500 15.000 150,000 Particulars Commission on reinsurance ceded Statutory Reserve Furniture and fixtures 100.000 59.000 75,000 71 Page

Answer 1

AXA Life Assurance Company Revenue Account for the year ended 31 March 2019 Particulars Schedule Current year Income Premium earned 11 186000 Consideration for annuities 75000 Commission on reinsurance ceded 94000 Total (A) 3550001 Expenses Claims incurred 21 166000 Operating expenses 41 240000 Total (B) 406000 Operating Loss A-B -51000

180000 6000 186000 Schedule 1 Premium earned Outstanding premium Total Schedule 2 Claims incurred Outstanding claim Total 150000 16000 166000

15000 24000 21000 3000 Schedule 4 Operating expenses Bonus to policy holders Surrender Value Depreciation Add additional depreciation Dividends Maintenance Salaries to employees General expense less paid in advance Repairs Bad debts Total 24000 28500 6000 91500 21000 3000 18000 18000 15000 240000

AXA Life Assurance Company Balance sheet as on 31 March 2019 Liabilities OMR Assets OMR Share capital 150000 Investment 84000 Statutory reseve 59000 Agents Balance 30000 Life Assurance Fund 186000-51000 135000 Outstanding premium 6000 Other liabilities Prepaid general expense 3000 Claim outstanding 16000 Loans to other insurance companies 7500 Commission on reinsurance ceded received in advance 6000 Premises 67500 Furniture and fixtures 75000 Less depreciation 3000 72000 Cash deposit 96000 Total 366000 Total 366000