Question
ACCT311_FA20_ASG02_CHP06_28102020 Deposits and Investments 1.In the year 2019, Ummah Bank earned annual profit attributable to Unrestricted Mudharabah account after distribution of profit to the bank
ACCT311_FA20_ASG02_CHP06_28102020
Deposits and Investments
1.In the year 2019, Ummah Bank earned annual profit attributable to Unrestricted Mudharabah accountafter distributionof profit to the bank amounting to $13,200,000. Depositors' profit sharing ratio is 70% and Bank is 30%. The following is information pertaining to deposit types, average balance and the weight used for mudharabah deposit account for the bank in the year 2019.
Investments tenureAverage balanceWeights
$
6 months and less10,000,0000.60
9 months and less25,000,0000.90
12 months and less40,000,0001.00
More than 12 months25,000,0001.25
Three Investors/Depositors:
Zayd$500,000 investment placement for 9 months
Aisyah$250,000 investment placement for more than 12 months
Izzah$1,200,000 investment placement for 6 months
Determine the Weighted Average Balance, Investor's share of profit and investors Rate of Return for Zayd, Aisyah and Izzah for the year 2019.
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