Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. In the year 2019, Ummah Bank earned annual profit attributable to Unrestricted Mudharabah account after distribution of profit to the bank amounting to $13,200,000.

1. In the year 2019, Ummah Bank earned annual profit attributable to Unrestricted Mudharabah account after distribution of profit to the bank amounting to $13,200,000. Depositors' profit sharing ratio is 70% and Bank is 30%. The following is information pertaining to deposit types, average balance and the weight used for mudharabah deposit account for the bank in the year 2019.

Investments tenure Average balance Weights

$

6 months and less 10,000,000 0.60

9 months and less 25,000,000 0.90

12 months and less 40,000,000 1.00

More than 12 months 25,000,000 1.25

Three Investors/Depositors:

Zayd $500,000 investment placement for 9 months

Aisyah $250,000 investment placement for more than 12 months

Izzah $1,200,000 investment placement for 6 months

Determine the Weighted Average Balance, Investor's share of profit and investors Rate of Return for Zayd, Aisyah and Izzah for the year 2019.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: C. William Thomas, Wendy M Tietz

13th Edition

013689903X, 9780136899037

More Books

Students also viewed these Accounting questions

Question

1. Think out loud as you solve problems.

Answered: 1 week ago

Question

Draw a labelled diagram of the Dicot stem.

Answered: 1 week ago

Question

1 What theories are implicit in these reward systems?

Answered: 1 week ago