Accounting Question

• 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 answers 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.

College of Administration and Finance Sciences
Assignment (2)
Deadline: Saturday 23/11/2024 @ 23:59
Course Name: Insurance Accounting
Student’s Name:
Course Code: ACCT 424
Student’s ID Number:
Semester: First
CRN:
Academic Year: 1446 H
(2024-25)
For Instructor’s Use only
Instructor’s Name: Dr. Amar Johri
Students’ Grade:
/15
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 answers 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.
College of Administration and Finance Sciences
Assignment Questions:
(Marks 15)
Q1. What do you mean by Guaranty Fund and Other Assessments in the insurance industry? Describe
with suitable examples the three primary methods used to assess guaranty funds assessments for
property and liability insurance firms.
Note: Your answer must include suitable examples for each method.
(5 Marks) (Week 10, Chapter 8)
Answer:
Q2. Part a) What are the various transactions involved in Takaful Operations? (2 Marks)
Part b) The following financial transactions are related to a General Takaful Product: (3 Marks)
i.
An amount of SAR 15,500 received as advanced contribution from new participants.
ii.
An amount of SAR 11,250 received as a contribution from new participants.
iii.
Contribution renewal received from participants SAR 13,750.
You are required to prepare the necessary journal entries.
(Week 11, Chapter 3)
Answer:
Q3. AT&T Company has the following financial data:
Particulars
Total Profit for the Year
General Takaful Assets (Year 2019)
General Takaful Assets (Year 2020)
Cash
Short-term Investment
(5 marks) (Week 12, Chapter 4)
Amounts (SAR)
86,625
238,500
257,625
31,725
33,525
College of Administration and Finance Sciences
Short term liabilities
Underwriting Surplus Distributable to Participants/Participants’ Share of Profit
Gross Contribution
Net Contribution
Wakalah Fee
Commission Paid
Management Expense
Net Claim Incurred
Earned Contribution
Calculate:
a) Return on Assets
b) Quick Liquidity
c) Surplus Distribution Ratio
d) Expense Ratio
e) Claims Ratio
Answer:
42,750
51,825
173,700
129,375
41,625
34,245
38,700
73,125
124,875