Compare and contrast the two contracts in the following Case

A grocery store owner wants to add a cold dink corner to his existing business where he will be selling cold drinks of a famous brand like Coca Cola or Pepsi . To set up this stall he needs a deep freezer or chiller as without it he will not be able to sell which will cost him 1000Bd , getting all the necessary details and successful completion of required verifications, Islamic finance program approves his application and provide two contract diminishing Musharaka agreement and Murabaha Agreement both for 2 years.

A. The diminishing Musharaka will be on the following terms and conditions.

i.Contribution of Islamic Microfinance program will be 500Bd

ii.Profit Sharing ratio is 40:60.

iii. the rental for the deepfreezer is 30 Bd /month

B. The Murabaha will be with a profit ratio is 5%

answer the following

1. Discuss the two contracts at the case study according to Shariah Law.2. 4. Calculate the returns through Murabaha contract

Service Sector: - Client X wants to purchase a taxi for offering transport services to passengers and earn income from fares recovered from them, but in short of funds. - Islamic Bank B agrees to participate in purchase of Taxi. - Both purchased the car (BD 7,000/-)and agreed to 70:30 off the earnings. - Taxi rides has net income of 1,000/ day. - Show calculation of profit amongst 2 parties as Diminishing Musharaka. Musharaka- service sector