Below is the case study for the understanding of suggested Ijarah accounting: The ijarah rent is received on monthly basis.

Example Amount in Rs./% Asset Price 200 0 Riyals Monthly rentals 60 Rivals Tenure 1 years Security Deposit 100 Delivery time 1 month Purchase date of the asset 1-1-2016 Useful life of the asset 12 months Residual value of the asset 100 Rivals