question archive From the following information furnished to you by Ayushman Insurance Co
From the following information furnished to you by Ayushman Insurance Co
Subject:AccountingPrice: Bought3
From the following information furnished to you by Ayushman Insurance Co. Ltd., you are required to pass Journal entries relating to unexpired risk reserve and show in columnar form "Unexpired Risks Reserve A/c" for 2009. (a) On 31.12.2008, it had reserve for unexpired risks amounting to Rs. 40 crores. It comprised of Rs. 15 crores in respect of Marine Insurance business, Rs. 20 crores in respect of Fire Insurance business and Rs. 5 crores in respect of Miscellaneous Insurance business. (b) Ayushman Insurance Co. Ltd. creates reserves at 100% of net premium income in respect of Marine Insurance policies and at 50% of net premium income in respect of Fire and Miscellaneous income policies. (c) During 2009, the following Business was conducted : (Amount in crores) Marine Fire Miscellaneous Premium collected from: (a) Insured in respect of policies issued 18.00 43.00 12.00 (b) Other insurance companies in respect of risks undertaken 7.00 5.00 4.00 Premium paid/payable to other insurance companies on business ceded 6.70 4.30 7.00
