Question

2008 SEP.[9] The life fund of a Life Assurance Company was Rs.
86,48,000 as on 31.3.2000. The interim bonus paid during the
intervaluation period was Rs. 1,48,000. The periodical actuarial
valuation determined the net liability at Rs. 74,25,000.
Surplus brought forward from the previous valuation was Rs.
8,50,000. The directors of the company proposed to carry for-
ward Rs. 9,31,000 and to divide the balance between the share-
holders and the policy-holders in the ratio of 1 : 10.
Show :
(a) the valuation balance sheet
(b) the net profit for the valuation period,
(c) the distribution of the surplus.
(Marks 20)
Ans. ( (a) Surplus Rs. 12,23,000; (b) Rs. 5,21,000; (c) Amount
payable to shareholders Rs. 40,000 and to policyholders
Rs. 2,52,000 ]​

Answer 1

Accounting standard 6 deal with