On 12 January, 2023, Half Islamic Bank signed a Mudaraba contract with a client for the construction of a housing unit. The bank provided USD 500,000 for the construction. Both parties agreed to a profit-sharing ratio of 70:30. Because of the damage to the property, the business suffered a loss of USD 50,000 in the second year. Which of the following accounting entries will the bank use to record the transactions at the end of the second year?

a. Debit: Cash = USD 50,000, Credit: Mudaraba Capital = USD 50,000

b. Debit: Loss on Mudaraba = USD 50,000, Credit: Cash = USD 50,000

c. Debit: Loss on Mudaraba = USD 50,000, Credit: Mudaraba Capital = USD 50,000

d. Debit: Cash = USD 35,000, Credit: Mudaraba Capital = USD 35,000