The following table shows the statement of financial position for Jims Shams Company as a June 30,

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The following table shows the statement of financial position for Jims Shams Company as a June 30, 2020.

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Additional Information at the end of the year:

1.

A total of $400,000 value of held-for-trading securities of M Berhad has been treated as a long-term investment where the company has no intention to liquidate and the company intends to become the major shareholder of M Berhad.

2.

Ten percent (10%) of the bills receivable is nonrecoverable and must be written off. This provision has not been provided in the preceding statement of financial position. Required: Determine the amount of zakat payable by Jims Shams Company for the financial year ended June 30, 2020, based on the two recommended methods in AAOIFI’s FAS 9.

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Related Book For  book-img-for-question

Principles Of Islamic Accounting

ISBN: 9781119023296

1st Edition

Authors: Nabil Baydoun, Maliah Sulaiman, Roger J. Willett, Shahul Ibrahim

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