Q1. From the following financial values, calculate:Â
a)Claims Ratio
b)Expense Ratio
c)Combined Ratio
d)Return on Revenue
e)Return on Assets
Particulars
Amounts ($)
Net Claim Incurred
175,000
Earned Contribution
405,000
Wakalah Fee
35,000
Commission Paid
2,200
Management Expense
22,000
Net Contribution
425,000
Gross Contribution
622,000
Total Profit for the Year
235,000
General Takaful Assets (Year 2010)
910,000
General Takaful Assets (Year 2011)
995,000
ANSWER:
2. Prepare necessary journal entries from the following transactions related with a Takaful product.
i.Contribution received from new participants $1,000.
ii.An amount of $2500 received as contribution renewal from participant.
iii.Advanced contribution received from new participants $2000.
ANSWER:
