ACCT 424 Saudi Electronic University Wk 12 Renewal Contribution Revenue Questions

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fnzv67

Business Finance

ACCT 424

Saudi electronic university

ACCT

Description

Q1. From the following financial values, calculate:

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  • Claims Ratio
  • Expense Ratio
  • Combined Ratio
  • Return on Revenue
  • Return on Assets
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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.

Unformatted Attachment Preview

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. • Assignments submitted through email will not be accepted. • Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page. • Students must mention question number clearly in their answer. • Late submission will NOT be accepted. • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. • All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism). • Submissions without this cover page will NOT be accepted. 1 Assignment Question(s): Q1. From the following financial values, calculate: (3 marks) a) b) c) d) e) Claims Ratio Expense Ratio Combined Ratio Return on Revenue Return on Assets Particulars Net Claim Incurred Earned Contribution Wakalah Fee Commission Paid Management Expense Net Contribution Gross Contribution Total Profit for the Year General Takaful Assets (Year 2010) General Takaful Assets (Year 2011) Amounts ($) 175,000 405,000 35,000 2,200 22,000 425,000 622,000 235,000 910,000 995,000 ANSWER: 2. Prepare necessary journal entries from the following transactions related with a Takaful product. (2 mark) i. Contribution received from new participants $1,000. ii. An amount of $2500 received as contribution renewal from participant. iii. Advanced contribution received from new participants $2000. ANSWER: 2
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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.
• Assignments su...


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