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.