Question
Al-Ameen Islamic Bank provides Musharakah Muataqisah financing to Shanana Corporation for water piping project amounting to RM7,000,000. This amount represent 70% of the total cost
Al-Ameen Islamic Bank provides Musharakah Muataqisah financing to Shanana
Corporation for water piping project amounting to RM7,000,000. This amount
represent 70% of the total cost of the project. The term of financing is for 6 years and
the partner is required to pay back to the bank in 6 equal instalment. The profit sharing
ratio is agreed at 70:30 (Bank:Partner). The profits and losses as disclosed by the
partner are as follows:
Year 1 : (RM1,000,000)
Year 2 : (RM500,000)
Year 3 : RM2,500,000
Year 4 : (RM750,000)
Year 5 : RM2,000,000
Year 6 : RM4,000,000
Determine the profits or losses that should be recognized by both partners from year
1 to year 6 using the appropriate complete table.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started