Accounting Question

College of Administration and Finance Sciences
Tax and Zakat Accounting:
Q1. Using your own words, List Five with an explanation of the obligatory conditions of Zakat
to be eligible as alms assets. (5 Marks)
Q2. Abdullah is a Saudi citizen has submitted his zakat return including the following
information for 1445 H (4 Marks)
a) Owns an investment car at a book value of 450,000 and with market value of 510,000, the car
produced a monthly rental value of 33,000, actual total expenses incurred every month of
getting the income is SAR 5,500.
b) Owns a farm at a book value of 950,000 and during the year it produces different type of
fruits. The total gain is SR 390,000. Expenses of the production are estimated at one-third,
assuming it’s watered by water from springs and rain.
Required: Calculate the receptacle of the zakat for each kind assuming the zakat receptacle exceeds
Nisab.
Q3. Using your own words, explain the different concepts of income from accounting,
economics, and taxation perspectives. (3 Marks)
College of Administration and Finance Sciences
Q4. Using the Formula for individual income tax. Give a comprehensive numerical example for
calculating income tax for an individual taxpayer in United States. (3 Marks)
College of Administration and Finance Sciences
Insurance accounting
1. Line of Insurance can further be classified as primary coverage or
reinsurance assumed. Primary coverage involves policies written
between an insurer and a customer directly. Reinsurance coverage
involves the transfer of the insurer’s risk to a reinsurer. Explain the
various types of reinsurance in detail.
(5 Marks)
2. Define an Insurance Company as per Federal Income Taxation. State
the conditions for an Insurance company to be treated as Tax Exempt.
(2 Marks)
3. What are primary methods used to assess guaranty funds assessments
for property and liability insurance firms? Explain them. (3 Marks)
4. Pass the Journal Entries of the following transactions for Takaful
Products:
(5 Marks)
a) Contribution made by new the participants SAR 10,000,
Contribution made by renewal participants SAR 5000
b) Commission given to the agent SAR 2000
c) Portfolio Investment made by Takaful Operators SAR 12,000
d) Management Expenses incurred For fund manager SAR 3,000
e) Selling of Investment Assets of worth SAR 8500 sold for SAR 9000