Homework Assignment Chapter 8 Mudharabah

Razif entered into Mudharabah agreement with CIMB Islamic Bhd who agreed to provide RM500,000 financing. Profit sharing ratio between Razif and the bank in the ratio 4:6 respectively. Profits and lossess for the 4 years of the agreement were as follows:

Year 1 Loss RM150,000

Year 2 Profit RM250,000

Year 3 Profit RM200,000

Year 4 Loss RM70,000

Questions: Please prepare journal entries and balance sheet for the bank from Year 1 till Year 4.