23 Jan The marketing manager of Negi general insurance Co# 6td# has attracted a few items from the trial balance of the company as
The marketing manager of Negi general insurance Co# 6td# has attracted a few items from the trial balance of the company as at December 31- 1!!0 and has requested you as Chief Accountant to prepare revenue a7c and profit and loss account for the year 1!!0# $the items extracted are as follows+8 S$". Directors fees.'-'''Dividends received."'-'''9roision for ta (1#1#!0)"'-'''interest received !'-'''*ide Assets (1#1#!0)1''-'''5ncome tax paid during the year"''-''' %i Main "$". "$". Outstanding Claims (1#1#!0) 13'-''' 3'-'''Claims paid ,"'-'''.!'-''':seers for unexpected rise% (1#1#!0) "''-'''3'-'''premiums received-33'-'''!'-'''Commission to agents 1"'-'''1''-''';lenses to management 1!'-''' '-''' :insurance premium (Dr#) 13'-''' 3'-'''$the following points are also to be taken into account+8(a)Depreciation on fixed assets at 1'< be provided(b)5nterest accrued she# .'-'''(c)$he directors has decided that the provision for taxation should stand at she# ,''-''' on December 31-1!!0#(d)Claims outstanding as on December 31- 1!!0+8 *ire she# "'-'''= Carine she# 1'-'''#(e)9remiums outstanding as on December 31st 1!!0+8 *ire shs# 1.'-'''= Carine she# 2'-'''#(f):reserves for unexpired rises to be %apt *ire "'< of the premiums= are 1''< of the premiums#
1: Parker invested $19,000 into the business.2: Paid $9,000 to acquire a used minivan.3: Purchased $1,800 of office furniture on account.4: Performed $2,100 of consulting services on account.5: Paid $300 of repair expenses.6: Received $800 from clients who were previously billed in item 4.7: Paid $500 on account to the supplier of office furniture in item 3.8: Received a $150 electric bill, to be paid next month.9: Parker withdrew $600 from the business.10: Received $250 in cash from clients for consulting services rendered.
