Question
6. Adilah wishes to start a ready-made garments business but lacks the required funds. Bariah agrees to participate with her for a specified period of
6. Adilah wishes to start a ready-made garments business but lacks the required funds. Bariah agrees to participate with her for a specified period of 4 years. Adilah contributes 40% of the investment and Bariah contributes 60%. Both start the business based on diminishing Musharaka. The proportion of the profit allocated for each of them is expressly agreed upon and is 50% each till the end of the Musharaka period of 4 years, since Adilah will also manage the business. Bariahs share in the business is divided into 8 equal units and Adilah purchases these units every 6 months from Bariah till all units are owned by Adilah. So, each 6 months Bariah earns part of the profits and the purchase price of 1 unit of ownership. (Moroccan dollar) MAD1 million was invested in the garments business. The business earns MAD10,000 each month. Prepare the payment schedule of the diminishing Musharaka.
6. Adilah wishes to start a ready-made garments business but lacks the required funds. Bariah agrees to participate with her for a specified period of 4 years. Adilah contributes 40% of the investment and Bariah contributes 60%. Both start the business based on diminishing Musharaka. The proportion of the profit allocated for each of them is expressly agreed upon and is 50% each till the end of the Musharaka period of 4 years, since Adilah will also manage the business. Bariah's share in the business is divided into 8 equal units and Adilah purchases these units every 6 months from Bariah till all units are owned by Adilah. So, each 6 months Bariah earns part of the profits and the purchase price of 1 unit of ownership. (Moroccan dollar) MAD1 million was invested in the garments business. The busi- ness earns MAD10,000 each month. Prepare the payment schedule of the dimin- ishing MusharakaStep by Step Solution
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