Accounting homework help
College of Administration and Finance Sciences
Assignment 3
Deadline: Saturday 30/04/2022 @ 23:59
Course Name: Insurance Accounting |
Student’s Name: |
Course Code: ACCT 424 |
Student’s ID Number: |
Semester: 2 |
CRN: |
Academic Year: 1443 H |
For Instructor’s Use only
Instructor’s Name: |
|
Students’ Grade: /Out of 10 |
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.
Assignment Question(s):
(Marks 10)
Q1. The following financial transactions are related with a General Takaful Product:
i. An amount of SAR 6,200 received as advanced contribution from new participants.
ii. An amount of SAR 4,500 received as a contribution from new participants.
iii. Contribution renewal received from participants SAR 5,500.
You are required to prepare necessary journal entries. (3 Marks)
Q2. Discuss the three primary methods used by Guaranty Fund to assess property and liability insurance using your own words. (2 Marks)
Q3. XYZ Company has the following financial data: (5 marks)
|
|
Total Profit for the Year |
377,500 |
General Takaful Assets (Year 2014) |
1,390,000 |
General Takaful Assets (Year 2015) |
1,517,500 |
Cash |
11,500 |
Short-term Investment |
23,500 |
Short term liabilities |
85,000 |
Underwriting Surplus Distributable to Participants/Participants’ Share of Profit |
145,500 |
Gross Contribution |
958,000 |
Net Contribution |
662,500 |
Wakalah Fee |
77,500 |
Commission Paid |
28,300 |
Management Expense |
58,000 |
Net Claim Incurred |
287,500 |
Earned Contribution |
632,500 |
You are required to calculate:
a) Return on Assets
b) Quick Liquidity
c) Surplus Distribution Ratio
d) Expense Ratio
e)
Claims Ratio
1