Description
Q1. From the following financial values, calculate:
undefined- Claims Ratio
- Expense Ratio
- Combined Ratio
- Return on Revenue
- Return on Assets
Particulars | Amounts ($) |
Net Claim Incurred | 175,000 |
Earned Contribution | 405,000 |
Wakalah Fee | 35,000 |
Commission Paid | 2,200 |
Management Expense | 22,000 |
Net Contribution | 425,000 |
Gross Contribution | 622,000 |
Total Profit for the Year | 235,000 |
General Takaful Assets (Year 2010) | 910,000 |
General Takaful Assets (Year 2011) | 995,000 |
2. Prepare necessary journal entries from the following transactions related with a Takaful product.
- Contribution received from new participants $1,000.
- An amount of $2500 received as contribution renewal from participant.
- Advanced contribution received from new participants $2000.
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College of Administrative and Financial Sciences
Assignment 3
Deadline: (End of Week 12) 10/4/2021@ 23:59
Course Name: Insurance Accounting
Student’s Name:
Course Code: ACCT 424
Student’s ID Number:
Semester: 2
CRN:
Academic Year: 1441/1442 H
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: Marks Obtained/Out of
5
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
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