Solved by verified expert:Prepare a revenue account and balance sheetThe following balances were extracted from the books of All Peoples Assurance Co. Ltd:Life Assurance fund 1,470,562Claims: by death 76,980 : by maturity 56,420Premiums 210,572Expenses of management 19,890Commissions 26,541Consideration for annuities granted 10,620Interest, dividends, and rent 52,461Income tax on these (paid) 3,060Surrenders 21,860Annuities 29,420Bonus paid in cash 9,450Bonus utilised in reduction ofPremium 2,500Preliminary expenses 600Claims admitted but unpaid at Year end 80,034Annuities payable 22,380Paid up share capital 400,000Government securities 1,490,890Sundry assets 509,110Fines for revising lapsed policies 92Requirement: Take into account the following;Claims covered under reinsurance – Sh10,000 Further claims intimated – Sh8,000 Further bonus utilised in reduction of premium – Sh1,500Interest accrued – Sh15,400Premiums outstanding – Sh7,400
