1.

Heaven Life Insurance Co. furnishes you the following information:ParticularsAmount (Rs)Life Insurance fund on 31.03.201752,00,000Net liability on 31.03.2017 as per actuarial valuation 40,00,000Interim bonus paid to policyholders during intervaluation periodYou are required to prepare: (i) Valuation balance Sheet; (ii) Statement of Net Profit for the valuation period; and (iii) Amount due to the policy holders.

Answer»

(i)Heaven Life Insurance Co. Valuation balance Sheet as at 31st march, 2017

ParticularAmountParticularsAmount
To Net Liability as per actuarial valuation To Surplus40,00,000By Life Assurance Fund52,00000
To Surplus 12,00,000
52,00,00052,00,000

(ii) Statement showing Net Profit for the valuation period 

ParticularsAmount
Surplus as per Balance Sheet (i.e.. Valuation Balance Sheet) 12,00,000
Add: Interim bonus paid3,00,000
15,00,000

(iii) Amount due to Policyholders

ParticularsAmount
95% of Net Profit due to policyholders (95% of Rs 15,00,000)14,25,000
Less: Interim bonus already paid3,00,000
Amount due to policyholders11.25,000



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