1. The following balances were extracted from the books of Cosmopolitan Life Insurance Company as on 31.03.2006. You are required to prepare its final accounts.

Rs.Shareholders Capital Rs.5,00,000 in 20,000 shares of Rs. 25 each, Rs.10 per share paid up 200000

Claims under policies paid and outstanding less received on reassurance 4500000

Life Assurance Fund (1.4.2005) 48000000Investment Reserve Fund (1.4.2005) 5000000Expenses of Management 1500427Investments 51000000Freehold and Leasehold Property 2500000Unpaid Dividends 51790Outstanding Premia (Net) 603200Claims admitted or intimated but not paid 3000000Outstanding Interest 590000Surrenders 358950Annuities 30000Premia less reassurances 7500000Consideration for annuities granted 50500Bonus in reduction of premium 4000Gain on redemption of debentures (to be carried to Investment Reserve Fund) 20000

Interests, Dividends and Rents Received 3200337Interest accrued 317000Income-tax 280149Transfer Fees 6430Agent’s Balances 145904Furniture and Fittings 90500Loans on Companies’ Policies 4900000Cash in hand and at Banks 364000Stamps on hand 7322Cheques paid into Banks and in course of collection 49000Cheques issued but not presented for payment 66520Sundry Creditors 44875Premia received in advances 100000

2. The following balances were extracted from the books of Mutual Life Assurance Company as on 31.03.2006.

Debit Rs. Credit Rs.Mortgages 1400000 Outstanding claims 22000Buildings 145000 Premiums 3394000Loans 155000 Consideration for annuities

granted420000

Investments 1200000 Interest and Dividends 100000Surrenders 25000 Life Assurance Fund 950000Annuities 12000 (1.4.2005)Claims by death 700000Claims by maturity 1000000Agent’s Balance 5000Deposits with RBI 30000

Outstanding Premiums 35000Commission 54000Cash at Bank 50000Sundry Debtors 63000Bonus in reduction of Premium 5000

Interest accrued but not received 7000

4886000 4886000You are required to prepare the final accounts after taking into account the following adjustments;a. Premiums outstanding 4500b. Interest accruing but not due 3700c. Claims admitted but not paid 3200d. Surrender claims not paid 1100e. Further bonus utilized in reduction of premiums 2000

3. The following trail balances was extracted from the books of New Bharat Life Assurance Company Limited as on 31.03.2006.

Debits Rs. Credits Rs.Paid up Capital (10000 shares of Rs.10 each) 100000Life Fund Balance (1.4.2005) 2972300Dividends Paid 15000Bonus in reduction of Premium 31500Premium less reinsurance premium 161500Claims paid 197000Outstanding claims (1.4.2005) 7000Commission 9300Management Expenses 32300Mortgages in India 492200Interest and Dividends received 112700Agents balances 9300Freehold premises 40000Investments 2305000Loans on Companies Balances 173600Cash on deposits 27000Cash in hand and current accounts 7300Surrenders 7000Medical fees 7000Consideration for annuities granted 10000Annuities 10000

3363500 3363500Prepare revenue account for the year ended 31st march 2006 and a balance sheet of the company as at that date after taking the following into consideration.1. claims outstanding Rs.100002. further bonus in reduction of premium Rs.50003. premium outstanding Rs.50004. claims covered under reinsurance Rs 80000 5. management expenses due Rs. 300006. commission on reinsurance ceded Rs. 5000

4. From the following figures extracted from the books of life assurance Company Limited as on 31.03.2006.

Rs.Cash in hand 1900Cash at bank 9020Life fund on 1st April 2005 5556148Share Capital 100000Interest accrued but not received 69613Investment Reserve Fund 88000Outstanding premiums 77651Premium less re-assurance 355674Loans on security of policies 425360Consideration for annuities to be granted 11338Shares and debentures in other companies 2042477Interest and dividends (less tax) 223535Municipal Securities 850320Fines for revival of policies 358Foreign Govt. Bonds 172760Claims announced but not paid 76135Bank loans 50000British Govt. securities 569517Annuities due but not paid 427Premium received in Advance 575Development loan 415000Stamps in hand 269Mortgages Outside India 394360Mortgages in India 902956Claims by death 337955Claims by Survivance 32226Surrenders 37303Income-tax on profit 8594Annuities 38688Bonus in reduction of premium 11156Commission 11417Interest and dividend to shareholders 9878Management Expenses 40070Interest outstanding on Investment 3700

The following information are given:1. Further Bonus utilized in reduction of Life Insurance Premium Rs.6500.2. Claims covered under re-insurance Rs.27000.

5. The following trail balances was extracted from the books of Life Insurance Corporation as on 31.03.2006. You are required to prepare the final accounts for the year ended 31st March 2006 after taking the following facts into consideration:1. Claims admitted but not paid 90002. Management Expenses Due 2003. Interest accrued 190004. Premium outstanding 100005. Bonus utilized in reduction of premium 20006. Claims covered under reinsurance 2300

Debits Rs. Credits Rs.Paid up Capital (10000 shares of Rs.10 each) 100000

Life Fund Balance (1.4.2005) 2972300Dividends Paid 15000Bonus in reduction of Premium 31500Premium less reinsurance premium 161500Claims paid 197000Commission Paid 9300Management Expenses 32300Mortgages in India 492200Interest and Dividends received 112700Agents balances 9300Freehold premises 40000Investments 2305000Loans on Companies Balances 173600Cash on deposits 27000Cash in hand and current accounts 7300Surrenders 7000

3346500 3346500

6. From the following trail balance prepare the Final Accounts of the Indian Assurance Company Ltd. for the year 31.03.2006.

Debit Rs. Credit Rs.Loans on Life interests 4281 Premium 365982Expenses of Management 18241 Profit on sale of

investments claims admitted but not

10824

Depoist with RBI Govt. Securities

200000 Paid 58421

Commission 9872 Sundry Creditors 7724Feehold Ground Rents 168421 Consideration for annuities

granted12272

Bonus in cash 4222 Interest, Dividend and Rent-(Gross)

120682

Surrenders 21104Claims by maturity 104728Annuities paid 7681House property 59888Claims by death 172681O/s premium 21641Income tax on interest receipts

7139

Agent’s balance 6824Port trust Debenture Interest and Principal Guaranteed by the Govt.

528241

Cash at bank 12724Cash in Hand 354Foreign Govt. Securities 142520Office Furniture 1500Shares in other cos. 121621Stock of policy stamps in land 168

Mortgages in India 661421Mortgages outside India 206490Loans on Govt. Securities 498321

British Govt. Securities 221640Loans on company’s Policies 174692

3376415 3376415

7. From the following trail balance Life Insurance Company prepare the Final Accounts after taking into account the following adjustments.1. Claims outstanding on 31.03.2006 135002. Claims recoverable from reinsurer 60003. Further Bonus utilized in reduction of premium 30004. Premiums outstanding 15005. Management expenses due 45006. Surrenders adjusted against loan on policies 5000

Trial Balance as on 31.03.2006Debit Rs. Credit Rs.

Claims paid 59500 Life Assurance Fund (1.4.2005)

1551800

Surrenders 8000 Investment Fluctuation Fund

54000

Loans against Mortgages 349500 Premium Deposits 18000Loans against Policies 150000 Sundry Creditors 22500Expenses of Management 111000 Interest accrued 84000Depreciation of Fixed Assets

1500 Claims outstanding on 1.4.2005

9000

Govt. Securities with RBI

390000 Premiums less re-insurance 421000

Other securities 825000Fixed Assets 75000Income-tax deducted on interest

9000

Outstanding premium on 31.03.2006

66000

Interest accrued 15000Sundry Debtors 24000Bonus in reduction of Premium

3000

Cash and Bank Balance 738002160300 2160300

8. The following trail balances was extracted from the books of Life Insurance Corporation as on 31.03.2006.

Debits Rs. Credits Rs.Mortgages 1400000Loans 300000Investments 1200000Surrenders 25000Annuities 12000Claims by death 850000

Claims by maturity 850000Claims due on 1.4.2005 22000Agents balances 5000Deposit with RBI 30000Premium 3000000Premium Outstanding 35000Consideration for annuities 400000Commission paid 54000Interest and Dividend 494000Life Fund on 1.4.2005 970000Cash at Bank 50000Management Expenses 50000Bonus in reduction of premium 18000Interest accrued 7000

4886000 4886000Adjustments:1. Premium Outstanding Rs.40002. Claims admitted but not paid on 31.03.2006 Rs.45003. Surrender claims not paid Rs.15004. Surrenders adjusted against loans on policies Rs.50005. Further Bonus in reduction of premium Rs.2500.Prepare Final Accounts.

9. The following are the ledger balances of Bharat Life Assurance Co. Ltd. as on 31 st March 2006.

Rs.Premium 1890500Life Assurance Fund as on April 1, 2005 2527825Claims paid 420600Claims admitted but not paid 40210Consideration for annuities granted 120000Interest, Dividends and Rents 170620Annuities 80900Income-tax on interest 30200Loss on sale of investments 127800Loans on policies 650000Surrenders 112800Re-assurance Premium 214500Buildings 450000Policy stamps on hand 6700Mortgage in India 1012700Bonus in reduction of premium 10200Bonus in cash 7800Investments 1250000Furniture 24500Commission 40670Expenses of Management 127800Cash and Bank balances 140790Outstanding Premium 440600Agents balances (Dr.) 120500Outstanding Expenses 52200

Share capital 500000Dividend paid to shareholders 25000Interest outstanding on Investments 7295

Prepare the final accounts of the company, taking the following matters into consideration:1. Claims covered under reinsurance Rs.475002. The Managing Director is to be paid commission of Rs.515203. Further Bonus in reduction of premium is Rs.5000

10. From the following information prepare Revenue Account of Active life Insurance Company Limited for the year ended 31.03.2006.

Rs.Life Assurance Fund (1.4.2005) 3042000Claims by death 152280Claims by maturity 60220Premiums 1411380Transfer Fees 258Interest and Dividends 195680Income-tax thereon 11420Bonus in Reduction of Premium 1960Consideration for Annuities granted 164254Annuities paid 106922Bonus in cash 4832Expenses of Management 63840Commission 19148Surrenders 26280Dividends to Shareholders 11000

11. The following trail balances was extracted from the books of National Life Assurance Company as on 31.03.2006.

Debits Rs. Credits Rs.Share Capital 320000Life Assurance Fund (1.4.2005)Dividend Paid 30000Interest and Dividend Received 225400Premiums Received 203000Surrenders 14000Claims paid 394000Commission paid 18600Management expenses 64600Mortgages in India 984400Agents Balances 18600Freehold Premises 80000Investments 4610000Loans on Company’s Policies 347200Cash on Deposits 54000Cash in hand 14600Bonus to Policyholders 63000

6693000 6693000You are required to prepare the company’s final accounts for the year ended March 31, 2006, after taking into consideration, the following adjustments:

1. Claims admitted but not paid 18600

2. Premium outstanding 240003. Interest accrued 386004. Management expenses Due 400

12. The following trail balances was extracted from the books of Life Insurance Corporation as on 31.03.2006.

Rs.Life Assurance Fund (as on 1.4.2005) 1470562Premium 210572Management expenses 19890Consideration for annuities granted 10620Dividend paid 20000Fines 92Annuities 29420Bonus in reduction of premium 2500Stamps on hand 400Annuities due but not paid 22380Govt. Securities 870890Mortgages 309110Freehold Premises 500000House property 100000Claims by death 79980Claims by maturity 36420Commission 26541Interest dividends and rent 52461Income-tax on Interest 3060Surrenders 21860Bonus paid in cash 9450Preliminary expenses 200Claims admitted but not paid 80034Share capital 403000Furniture 20000Loans on Company’s Policies 200000

Prepare the final accounts of the company after taking into consideration, the following:1. Claims covered under reinsurance Rs.200002. Further claims intimated Rs.200003. Further bonus utilized in reduction of premium Rs.30004. Re-insurance premium Rs.60005. Premium outstanding Rs.8000

13. The following trail balances was extracted from the books of Life Insurance Corporation as on 31.03.2006.

Rs.Shareholders Capital(Rs.10,000 shares of Rs.25 each, Rs.10 per share paid up) 100000

Claims under policies paid and outstanding less received on reassurance 2250000

Life Assurance Fund (1.4.2005) 24000000Investment Reserve Fund (1.4.2005) 2500000Expenses of Management 750213Investments 25500000Freehold and Leasehold Property 1250000

Unpaid Dividends 25895Outstanding Premium (Net) 301600Claims admitted or intimated but not paid 1500000Outstanding Interest 295000Surrenders 179475Annuities 15000Premium less reassurances 3750000Consideration for annuities granted 25250Bonus in reduction of premium 2000Gain on redemption of debentures (to be carried to Investment Reserve Fund) 10000

Interests, Dividends and Rents Received 1600168Interest accrued but not payable 158500Income-tax paid 140074Transfer and other Fees 3215Agent’s Balances Outstanding 72952Furniture and Fittings 45250Loans on Companies’ Policies within their surrender value 2450000Cash in hand and at Banks 182000Stamps in hand 3661Cheques paid into Banks and in course of realisation 24500Cheques issued but not presented for payment 33260Sundry Creditors 22437Premium received in advance 50000

You are required to prepare the revenue account for the year ended 31st march, 2006 and a balance Sheet at the date, of the New India Life Insurance Co. Ltd.

14. From the following figures prepare Revenue Account in the Statutory from of the Star Life Assurance Company Limited for the year ended 31.03.2006.

Rs.Claim by death paid 142000Claim by maturity paid 70200Premiums 1412100Considerations for annuities granted 164000Annuities paid 106900Bonus paid in cash 4800Expenses of Management 63800Commission 19140Interest, Dividends, Rents (net) 195700Income-tax deducted at source 12400Surrenders 26300Bonus in reduction of premium 1800Dividends paid to shareholders 9000Amount of Life Assurance Fund at the beginning of the year 3045000Outstanding Death Claims at the beginning of the year 22000Outstanding Death claims at the end of the year 16000

15. The following are the ledger balances of Life Assurance Co. Ltd. as on 31st March 2006.Rs.

Premiums 1890500Life assurance fund as on 1st April, 2005 2527825

Claims paid 420600Claims admitted but not paid 40210Consideration for annuities granted 120000Interest, dividends and rents (gross) 170620Income-tax on interest and dividends 30200Annuities 80900Loss on sale of investments 127800Loans on policies 650000Surrenders 112800Re-assurance premium 214500Buildings 450000Policy stamps on hand 6700Mortgages in India 1012700Bonus in reduction of premium 10200Bonus in cash 7800Investments 1250000Furniture 24500Commission 40670Expenses of management 127800Cash and bank balances 140790Outstanding Premium 440600Agent’s Balances (Dr.) 120500Outstanding Expenses 52200Share Capital 500000Dividend paid to shareholders 25000Interest outstanding on investments 7295

Prepare the final accounts of the Company, taking the following matters into consideration:1. Claims covered under re-insurance Rs.475002. The Managing Director is to be paid commission at the rate of 5% on the net increase

of Life Assurance Fund during the year before providing for such commission.3. Pending the Acturial Valuation a reserve of 20% premium income is to be made4. Further bonus in reduction of premium Rs.5000

16. The following trail balances was extracted from the books of Life Assurance Company Limited as on 31.03.2006.

Debits Rs. Credits Rs.Paid up Capital (10000 shares of Rs.10 each) 200000Life Fund Balance (1.4.2005) 5944600Dividends Paid 30000Bonus to policy holders 63000Premium received 323000Claims paid 394000Commission Paid 18600Management Expenses 64600Mortgages in India 984400Interest and Dividends received 225400Agents balances 18600Freehold premises 80000Investments 4610000Loans on Company’s policies 347200Cash on deposits 54000

Cash in hand and current accounts 14600Surrenders 14000

6693000 6693000You are required to prepare the company’s revenue account for the year ended 31 st March, 2006 and its balance sheet as on that date after taking the following matters into consideration:

1. Claims admitted but not paid 186002. Management expenses due 4003. Interest accrued 386004. Premiums outstanding 24000