Aariz entered into a Mudaraba contract with Al Islamic Bank. The bank agreed to provide RM 350,000 financing. Aariz and the bank are to share profits equally. Profits and losses for the first 4 years of the agreement were as follows: Year 1 Loss RM150,000 Year 2 Profit RM100,000 Year 3 Profit RM130,000 Year 4 Profit RM250,000 At the end of Year 4, they agreed to convert the Mudaraba to a Musharakah with Aariz investing RM150,000 as capital. The banks share of profits for Year 4 was not remitted to the bank but was invested in the new Musharaka, together with the balance of the banks Mudaraba capital at end of Year 4. The new profit sharing ratio was 40% for Aariz and 60% for the bank. The results of the Musharaka venture were as follows: Year 5 Profit RM200,000 (1st year of Musharaka) Year 6 Profit RM150,000 Year 7 Loss RM110,000 The bank decided to terminate the Musharaka agreement at the end of year 7. Alif had not paid back the balance of the Musharaka capital at end of Year 8. You are required: a) To prepare the journal entries for Al Islamic Bank for Year 1 to Year 8. (20 marks) b) To prepare an extract of the statement of financial position as at end of each financial year (year 1 to year 8). (10 marks) c) To explain what you understand by a Mudarabah contract and contrast this with a Musyarakah contract.