On January 3, 2023, LFA Islamic Bank signed a diminishing Musharakah contract with a client for the
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On January 3, 2023, LFA Islamic Bank signed a diminishing Musharakah contract with a client for the construction of a housing unit. The bank contributed AED 200,000 and the client invested AED 300,000. Both parties agreed to share profit and loss in proportion of their capital ratios at the start of the year. The rent agreed in the contract is AED 100,000 per annum. At the end of each period, AED 50,000 of Musharakah will be transferred from the bank to the client. What will be the share of profit of the bank at the end of the second year?
a. 20,000
b. 50,000
c. 30,000
d. 25,000
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Related Book For
Financial Reporting For Islamic Financial Institutions Accounting Standards Interpretation And Application
ISBN: 9781032464022
1st Edition
Authors: Abdul Rauf Mahar, Ayesha Bhatti, Muhammad Junaid Ashraf, Asfand Zubair Malik
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