Prepare the Revenue Account for the Fire Insurance Business for the year ended 31/3/2024, given the Net Premium Written and a policy of 50% reserve for unexpired risk.

April 10, 2026Accounting

ScanSolve AI Answer

April 10, 2026

Answer

$50\% \times Net Premium Written \\ &= 50\%$

Here's the preparation of the Revenue Account for Fire Insurance Business for the year ended 31/3/2024.

Schedule 1: Premium Earned (Net)

Step 1: Identify Net Premium Written. The problem provides 'D' as the Net Premium (after adjusting for direct business, reinsurance accepted, and ceded) as 2,52,00,000.

Step 2: Calculate the Reserve for Unexpired Risk at the end of the year. The company policy is to maintain a 50% reserve for unexpired risk.

\begin{align*} Closing Reserve for Unexpired Risk &= 50\% \times Net Premium Written \\ &= 50\%

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Here's the preparation of the Revenue Account for Fire Insurance Business for the year ended 31/3/2024.

Asked on April 10, 2026Accounting

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 AnswerAnswered on April 10, 2026

Here's the preparation of the Revenue Account for Fire Insurance Business for the year ended 31/3/2024. Schedule 1: Premium Earned (Net) Step 1: Identify Net Premium Written. The problem provides 'D' as the Net Premium (after adjusting for direct business, reinsurance accepted, and ceded) as 2,52,00,000. Step 2: Calculate the Reserve for Unexpired Risk at the end of the year. The company policy is to maintain a 50% reserve for unexpired risk. Closing Reserve for Unexpired Risk &= 50\% × Net Premium Written \\ &= 50\%