Question
Bahira Bhd, Inayaa Bhd and Bank Jamia signed a Mudarabah Al-Muqayyadah investment contract. The investment account allowed the bank to manage and invest the fund
Bahira Bhd, Inayaa Bhd and Bank Jamia signed a Mudarabah Al-Muqayyadah investment contract. The investment account allowed the bank to manage and invest the fund on behalf of Bahira Bhd and Inayaa Bhd in specific Shariah-compliant project.
Investment contribution and PSR are as follows:
Bank Zahra then entered into re-Mudarabah contract with Naira Corporation and contributed the RM6,000,000 as capital in Nairas high speed rail infrastructure connecting Kuala Lumpur and Bangkok. Bank Jamia and Naira Corporation agreed with profit sharing ratio of 70:30 (Bank: Naira). The project took 3 years to complete with the following outcome:
Calculate the profit/(loss) allocation for all parties based on:
- Each period method
- End of contract method
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