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A Sudanese Islamic bank invested into a grocery store for a one month period, applying a Musharaka contract. The investment contributions of the bank and
A Sudanese Islamic bank invested into a grocery store for a one month period, applying a Musharaka contract. The investment contributions of the bank and the grocery store partner with the net profit/loss are given in below table. Investment Percentage Net loss Bank 865 55 223 Partner 702 45 280 Total 1567 100 503 It was agreed that the profit/loss distribution between bank and partner is arranged as below: The 45% was to be distributed for management involvement with 34% being the partner's percentage in the management while the bank contributes 11% in management. It was also agreed that the 55% was to be distributed for profit/loss which the partner's percentage of the profit/loss is 25% and 30% as being the bank's percentage of the profit/loss. Calculate the following: (a) The total amount of loss with each party as the management share. (2 marks) (b) The total amount of loss with each party as the shared profit/loss. (2 marks) (c) The partner's monthly rate of return. (1.5 marks) (d) The bank's monthly rate of return. (1.5 marks) A Sudanese Islamic bank invested into a grocery store for a one month period, applying a Musharaka contract. The investment contributions of the bank and the grocery store partner with the net profit/loss are given in below table. Investment Percentage Net loss Bank 865 55 223 Partner 702 45 280 Total 1567 100 503 It was agreed that the profit/loss distribution between bank and partner is arranged as below: The 45% was to be distributed for management involvement with 34% being the partner's percentage in the management while the bank contributes 11% in management. It was also agreed that the 55% was to be distributed for profit/loss which the partner's percentage of the profit/loss is 25% and 30% as being the bank's percentage of the profit/loss. Calculate the following: (a) The total amount of loss with each party as the management share. (2 marks) (b) The total amount of loss with each party as the shared profit/loss. (2 marks) (c) The partner's monthly rate of return. (1.5 marks) (d) The bank's monthly rate of return. (1.5 marks)
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