contemporary issues in accounting :

the chapter about Sukuk.

• Show by a practical example a Sukuk Al Mudaraba - Sukuk based on equity partnership
• The example should be simple and contain practical information such as:
  • Number of partners in the sukuk agreement
  • Brief description of the business project to be undertaken
  • The duration of the business project
  • Share of profit and loss basis amongst the partners
  • A practical example of a project - Fill in the following and devise the share of the profit or loss for BOTH scenarios:

FILL-IN the table below:

Scenario A
Partnership results for Dec 2019	Calculation	AED
Number of items sold	12,400
Price per item	AED120
Cost of Goods sold 70% of sales
Expenses:
Approximately 15% of Sales
Profit
Profit/Loss share:	Partner 1: 55%
	Partner 2: 45%
Scenario B
Partnership results for Dec 2019	Calculation	AED
Number of items sold	12,400
Price per item	AED 80
Cost of Goods sold 70% of sales
Expenses:
Approximately 25% of Sales
Profit
Profit/Loss share:	Partner 1:55%
	Partner 2:45%