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Illustration: Target Performance for Musharakah Partner Z and Y have agreed on profit sharing ratio between them 65:35 in all cases except wher the profit
Illustration: Target Performance for Musharakah Partner Z and Y have agreed on profit sharing ratio between them 65:35 in all cases except wher the profit realized is more than a certain agreed upon benchmark, if the profit exceed GBP.750,000, which is the benchmark, Y will have the first GBP.350,000 and the remaining, will be shared on profit ratio 50:50. Calculate below for both cases (1. Profit is GBP 750,000, 2. Profit is GBP 950,000) : a. Capital invested by Z in GBP. b. Capital invested by Y in GBP. c. Profit/losses incurred by Z and Y after first year in GBP. d. Profit/losses incurred by Z and Y after second year in GBP. e. Z and Y claims at the end of investments in GBP. Illustration: Target Performance for Musharakah Partner Z and Y have agreed on profit sharing ratio between them 65:35 in all cases except wher the profit realized is more than a certain agreed upon benchmark, if the profit exceed GBP.750,000, which is the benchmark, Y will have the first GBP.350,000 and the remaining, will be shared on profit ratio 50:50. Calculate below for both cases (1. Profit is GBP 750,000, 2. Profit is GBP 950,000) : a. Capital invested by Z in GBP. b. Capital invested by Y in GBP. c. Profit/losses incurred by Z and Y after first year in GBP. d. Profit/losses incurred by Z and Y after second year in GBP. e. Z and Y claims at the end of investments in GBP
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