Bahari Insurance Company Limited accepts premiums from clients and settles claims as they fall due. The company has provided the following information as at 31st Dec 2021:
General Sh. ‘000’
1. Premiums : Received 4,600,000
: Receivable - 1st Jan 2021 248,000
- 31st Dec 2021 336,000
Paid to reinsurance 600000
2. Claims : Paid 2,350,000
: Payable - 1st Jan 2021 166,000
31st Dec 2021 208,000
: Received from reinsurance - 170000
3. Commission: accepted 220,000
ceded 700000
4. Other expenses and incomes were:
Rent and rates Sh.290, 000, Tax paid Sh.440, 000, Postage and stationery Sh.430, 000, Legal expenses (inclusive of Sh.400, 000 in connection with the settlement of claims) Sh.720, 000.
6. Reserve for unexpired risk on 1st Jan 2021 was Sh.445m for general and was to be adjusted 10 % each year.
8) Bonus in reduction of premiums in general insurance was sh. 40m
9) Capital allowances attributable to general insurance were agreed at sh.30m
10) Agency and commission fees for general insurance was sh100m.
11. Management expenses amounted to sh.140m
Required: The taxable position of the firm