1. Client A wants to purchase a house for which he does not have adequate funds. He then approaches a financier B (Islamic Bank) who agrees to participate in purchasing a designated house amounting to BD 100,000/- (2-bedroom house with garden & garage) in Ishbiliya Village. The client pays a total of 20% of the price & financier pays 80%. B owns 80% of the house and A owns 20%. a. During the first year A uses the house for residential purposes and pays rent to B which then reduces his share to 80% and A increases to 20%.(10 marks) b. Second year, the process of Musharaka continues until such time ownership increases to 100% and B's share becomes zero (O). (10 marks) c. Illustration as follows: Partner A Partner B's Musharaka Capital share share Account Investment Initial Amout 20% 80% BD20,000 BD 80,000 Paid 1" year 10,000 70,000 60% 10,000 60,000 34 year 10,000 50,000 60% 10,000 40,000 5th year 10,000 30,000 6th year 80% 10,000 20,000 7th year 10% 10,000 10,000 100% 70% 2nd year 30% 40% 50% 4th year 50% 40% 30% 20% 70% 90% 8th year o o o 1. Client A wants to purchase a house for which he does not have adequate funds. He then approaches a financier B (Islamic Bank) who agrees to participate in purchasing a designated house amounting to BD 100,000/- (2-bedroom house with garden & garage) in Ishbiliya Village. The client pays a total of 20% of the price & financier pays 80%. B owns 80% of the house and A owns 20%. a. During the first year A uses the house for residential purposes and pays rent to B which then reduces his share to 80% and A increases to 20%.(10 marks) b. Second year, the process of Musharaka continues until such time ownership increases to 100% and B's share becomes zero (O). (10 marks) c. Illustration as follows: Partner A Partner B's Musharaka Capital share share Account Investment Initial Amout 20% 80% BD20,000 BD 80,000 Paid 1" year 10,000 70,000 60% 10,000 60,000 34 year 10,000 50,000 60% 10,000 40,000 5th year 10,000 30,000 6th year 80% 10,000 20,000 7th year 10% 10,000 10,000 100% 70% 2nd year 30% 40% 50% 4th year 50% 40% 30% 20% 70% 90% 8th year o o o