Reference no: EM131800639

The following balances were extracted from the books of Ulinzi Insurance Company Ltd. As at 31 March 2000:

The following additional information is available:

1. Estimated liability in respect of claims outstanding at the close of the year was as follows:

Fire Sh.39,000 Marine Sh.141,000

2. The following provisions are to be made:

Sh.150,000 survey expenses for marine insurance claims

Sh.300,000 for taxation

An additional reserve of 10% of the net premium was made for the unexpired risks in the case of fire insurance in addition to the balance brought forward.

In respect of fire insurance, a reinsurance premium paid Sh.450,000, a claim of Sh.150,000 covered by insurance and a commission at 5% on reinsurance ceded have still to be accounted for.

The market value of the investments is Sh.21,375,000.

The reserve for unexpired risk should be 100% of the premium less reinsurance in marine business.

Required:

The revenue accounts and profit and loss account for the year ended 31 March 2000 and a balance sheet as at that date.