Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For the accounting year ending 31 st December 2021, Bank Bder earns a profit of $20,000,000 on the balances in equity investment accounts. The profit-sharing

For the accounting year ending 31st December 2021, Bank Bder earns a profit of $20,000,000 on the balances in equity investment accounts. The profit-sharing ratio between Mudharabah deposit account holders is 57.3%. The following details the deposit types, average balance, and the weights used for Mudharabah deposit accounts of the bank in 2021.

Investment categories

Total Amount

Weightages

Defined deposits

24119000.00

87%

Investment Certificates

50000000.00

90%

Iqra

30000000.00

83%

Tejoori

80000000.00

43%

Required:

Ignore transfers to profit equalization reserves and investment risk reserve.image text in transcribed

For the accounting year ending 31st December 2021, Bank Bder earns a profit of $20,000,000 on the balances in equity investment accounts. The profit-sharing ratio between Mudharabah deposit account holders is 57.3%. The following details the deposit types, average balance, and the weights used for Mudharabah deposit accounts of the bank in 2021. Investment categories Total Amount Weightages Defined deposits 24119000.00 87% Investment Certificates 50000000.00 90% Iqra 30000000.00 83% Tejoori 80000000.00 43% Required: Ignore transfers to profit equalization reserves and investment risk reserve. What is the weighted average of the 'Defined Deposit? Calculate the profit of the 'Investment Certificates'. What is the rate of return for Tejoori account holders? 9.15% Not among the choices provided 3.93% $20983530.00 $4,116,263.33 Not among the choices provided

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Reporting Analysis And Decision Making

Authors: Shirley Carlon, Rosina Mcalpine, Chrisann Lee, Lorena Mitrione, Ngaire Kirk, Lily Wong

7th Edition

0730395294, 978-0730395294

More Books

Students also viewed these Accounting questions