Accounting For Islamic Financi

On January 1, 2014, Kuwait Finance House (KFH) and Abu Dhabi Islamic Bank (ADIB) entered into three years Mudarabah contract with Kuwait Real Estate Company (KRC) with capital contributions of KD150,000 and KD100,000, respectively. The agreed profitsharing ratio between KFH, ADIB, and KRC is 3:1:1, respectively. The profit and losses from the contract are as follows: Required For each year: a) Determine the profit or losses attributable to KFH, ADIB, and KRC from the contract b) Determine the capital amount recovered by KFH and ADIB c) Prepare the appropriate accounting entries at KFH