Aman Manufacturing Sdn Bhd (AMSB) deposits RM3 million into Bank Islam Maju Berhad (BIMB). AMSB choose Wadiah Deposit accounts. At the end of the year AMSB withdrew in total RM1.2 million from the deposit accounts. At the end of the year, BIMB declared hibah of RM1 million to this type of Wadiah Deposit accounts. Of the RM1 miilon, RM50,000 belong to AMSB.

Required:

1. Highlights FOUR (4) main characteristics of Wadiah Deposit that are being implemented in Malaysia.

(8 marks)

(b) Prepare journal entries to record the above transactions in BIMB books (with respect to AMSBs transactions with BIMB).

(6 marks)