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Equity already invested in various fixed assets: 6. Dhaka Bank showed the following financial data at the end of the year (in Bangladeshi taka,
Equity already invested in various fixed assets: 6. Dhaka Bank showed the following financial data at the end of the year (in Bangladeshi taka, BDT). Dhaka Bank balances: Current account Unrestricted investment accounts Dhaka Bank equity 15,000,000 60,000,000 40,000,000 30,000,000 Annual profit (revenue minus expenses) from investment of the above amounts: 8,600,000 Bank policy regarding percentage of funds to be invested: Current accounts (at bank's own risk) Unrestricted investment accounts Equity available for investments 40% 90% 100% Dhaka Bank deducts 5% of the Mudaraba net revenue as profit equalization reserve and 5% of the investors' share of profit as investment risk reserve. The profit sharing as per the Mudaraba contract is 75% for investors, 25% for the bank. Calculate the Mudaraba annual profit distributed between the investment account holders and the equity holders. Also, calculate the profit equalization reserve and the investment risk reserve allocations. 10
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