Accounting For Islamic Financi

On January 1, 2015, Kuwait Finance House (KFH) and Kuwait International Bank (KIB) entered into two years Mudarabah contract with Amana LLC with a contribution of KD 80,000 from KFH and KD 70,000 from KIB. The profits will be distributed between KFH, KIB, and Amana LLC in the ratio of 4:3:3, respectively. The profit and losses from the contract are as follows: Required: For each year: a) Determine the profits or losses attributable to KFH, KIB, and Amana LLC from the contract b) Determine the capital amount recovered by KFH and KIB c) Prepare the appropriate accounting entries at KFH