HIRE QUALIFIED ACADEMIC WRITERS
The following trial balance was extracted from the books of Bima Insurance Ltd as at 30 June 2006 Sh’000’Sh’000’Net earned premiums:Fire 139,668 Motor 259,456Net commissions:Fire 3,466 Motor 6,938 Net earned paid:Fire 55,784 Motor 111,562 Net claims outstanding as at 1 July 2005:Fire 72,036 Motor 144,074Management expenses to be charged to revenue accounts 155,108 Management expenses not to be charged to revenue accounts 20,000 Bad debts 5,000 Treasury bills 199,100 Treasury bonds 11,386 Deposits in banks 474,100 Motor vehicles (net book value-1 July 2005) 1,000 Equipment (Net book value – 1 July 2005) 14,414 Amounts due to other insurance companies 4,000Amounts due from other insurance companies 6,940 Bank overdraft 16,000Share capital 120,000Investment income 72,000Other income 17,564Revaluation reserves 50,000Retained earnings as at 1 July 2005 30,000Unearned premium reserves as at 1 July 2005:Fire 40,000 Motor 100,00 1,064,7981,064,798Additional information:1 Management expenses are to be apportioned to revenue accounts on the basis of net earned premiums2 The management made the following estimates as at 30 June 2006:Sh’000’Net claims outstanding: Fire 90,000Motor 158,0003 Reserve for unexpired risks as at 30 June 2006 is to be maintained at 50% of the respective net earned premiums for both the fire and motor businesses4 Depreciation on motor vehicles and equipment is to be provided using the reducing balance method at the rates of 20% and 10% per annum respectivelyRequired:(i) Revenue accounts for the year ended 30 June 2006(ii) Profit and loss account for the year ended e0 June 2006
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