This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
ScanSolve AI Answer
To prepare the Revenue Account for Fire Insurance Business, we first need to calculate the figures for the relevant schedules: Schedule 1 (Premium Earned), Schedule 2 (Claims Incurred), Schedule 3 (Commission), and Schedule 4 (Operating Expenses). Schedule 1: Premium Earned (Net) Step 1: Calculate Gross Premium. The problem provides a partially filled Schedule 1. We will assume the final figure 'D' of 2,52,00,000 represents the Gross Premium (after adjusting for reinsurance accepted and ceded) for the year. Gross Premium (after reinsurance adjustments) = 2,52,00,000 Step 2: Adjust for outstanding premium. Add: