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    Acc211A JAN 24 Assignment 3

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    A Kim

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    Acc211A JAN 24 Assignment 3

    Uploaded by

    A Kim
    13 views3 pages

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    13 views3 pages

    Acc211A JAN 24 Assignment 3

    Uploaded by

    A Kim

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    ACC 211A

    Assignment 3
    Due on Friday this week in class

    The following trial balance relates to Boma Insurance Company Ltd. For the year ended 30
    June 2023;

    Sh.”000” Sh.”000”
    Ordinary shares of Sh. 10 each 50,000
    9% cumulative preference shares 20,000
    Statutory reserve 4,200
    Retained earnings 15,800
    Freehold land 18,000
    Building: Cost 60,000
    Accumulated depreciation 5,000
    Equipment : Cost 60,000
    Accumulated depreciation 13,000
    Government securities 28,500
    Investment in shares 12,500
    Claimed paid 28,400
    Gross premium earned 86,000
    Re-insurance premiums ceded 10,700
    Legal expenses 3,800
    Commissions earned 450
    Commissions payable 700
    Unearned premiums 47,500
    Operating expenses 14,250
    Accrued preference dividends payable 5,400
    Fees received 4,400
    Repairs and maintenance 8,500
    Trade receivables 15,350
    Trade payables 8,500
    Investment income 1,800
    Claims outstanding 4,100
    Bank balances 3,900
    Receivables arising out of re-insurance 1,550
    arrangements
    266,150 266,150
    Additional information:
    1. The freehold land was revalued upwards by Sh.2 million but the revaluation had not
    been incorporated in the accounts.
    2. Dividends on preference shares were in arrears for four years. The board has decided
    to pay the dividends for only three years.
    3. Depreciation is to be charged per annum using the straight line method as follows:

    Asset Rate per annum


    Building 2%
    Equipment 15%

    4. Claims amounting to Sh. 2.850.000 were estimated to be outstanding as at 30 June


    2023.
    5. Current year's estimated tax is Sh. 5.000.000.
    6. Out of the total legal expenses incurred in the year ended 30 June 2023,
    2,450,000 was on claims paid.
    7. The directors have recommended a first and final dividend for 20% on
    Ordinary shares.

    Required:
    i) Statement of comprehensive income for the year ended 30 June 2023.
    ii) Statement of financial position as at 30 June 2023.

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