What is Revenue account of Life Insurance Company?
A life insurance company shall prepare the Revenue Account [Policyholders’ Account], Profit and Loss Account [Shareholders’ Account] and the Balance Sheet in Form A-RA, Form A- PL and Form A-BS, as prescribed in this Part, or as near thereto as the circumstances permit.
What is insurance revenue account?
General Insurance Revenue Account:
The Revenue Account is credited with the reserve for unexpired risks at the beginning of the year along with the credit items of incomes and the said account is debited with debit items of expenses along with the reserve for unexpired risks at the end of the year.
How is revenue account prepared by a life insurance company?
This account is prepared by taking the opening balance of Life Insurance Fund (Cr.) together with all the revenue incomes/receipts and, at the same time, all revenue expenditures appear in the debit side, the balance is carried forward as Life Insurance Fund.
What is life insurance accounting?
Life insurance is coverage that pays beneficiaries a stated sum if the insured party dies. In exchange for this payout, the insured pays the insurer a designated premium (which is based on actuarial statistics) at intervals over the term of the policy.
What is the revenue account?
A revenue account is an account with a credit balance. It includes all the revenue receipts also known as current receipts of the government. These receipts include tax revenues and other revenues of the government.
How do I create a revenue account?
To write an income statement and report the profits your small business is generating, follow these accounting steps:
- Pick a Reporting Period. …
- Calculate Your Revenue. …
- Determine Cost of Goods Sold. …
- Calculate the Gross Margin. …
- Include Operating Expenses. …
- Include Income Taxes. …
- Calculate Net Income.
How many types of revenue accounts are prepared by general insurance company?
(1) An insurer shall prepare the Revenue Account [Policyholders’ Account], Profit and Loss Account [Shareholders’ Account] and the Balance Sheet in Form A-RA, Form A-PL and Form A-BS, as prescribed in this Part, or as near thereto as the circumstances permit.
How many Schedules are there in revenue account of insurance company?
In both cases, Revenue Account and Balance Sheet are given in summary form. There are 15 Schedules in each case, the first four schedules relate to Revenue Account and the remaining eleven schedules relate to Balance Sheet which give details of the summary heads.
What is a reinsurance contract called?
What Is Reinsurance? Reinsurance is also known as insurance for insurers or stop-loss insurance. Reinsurance is the practice whereby insurers transfer portions of their risk portfolios to other parties by some form of agreement to reduce the likelihood of paying a large obligation resulting from an insurance claim.
What account does prepaid insurance go under?
Prepaid insurance is the portion of an insurance premium that has been paid in advance and has not expired as of the date of a company’s balance sheet. This unexpired cost is reported in the current asset account Prepaid Insurance.