Question
In the year 2020, Bank Ummah earned annual profit attributable to Mudarabah depositors (Mudarabah Mutlaqah) before distributing profit to the Bank amounting to RM1,500,000. Depositors
In the year 2020, Bank Ummah earned annual profit attributable to Mudarabah depositors (Mudarabah Mutlaqah) before distributing profit to the Bank amounting to RM1,500,000. Depositors profit sharing ratio under Mudarabah deposit account is currently at 0.7 (70:30 Depositors: Bank). The following is the information pertaining to deposit types, average balance, and the weights used for Mudarabah deposit account in the Bank for the year 2020:
Deposit Types | Average Balance (2016) | Weights | Weighted Average Balance | Depositors Share | Depositors Rate of Return |
6 months & less | 5,000,000 | 0.5 |
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9 months & less | 6,000,000 | 0.75 |
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12 months & less | 8,000,000 | 1.0 |
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More than 12 months | 11,000,000 | 1.25 |
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| 30,000,000 |
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- Calculate the following:
- The amount of profit due to depositors.
- Weighted average balance for each deposit types.
- Depositors share of profit based on the weighted average balance
- Depositors rate of return for each deposit types.
- Based on the depositors rate of return as computed in part (a), determine the profit attributable to the following depositors in the Mudharabah general Investment Account of Bank Ummah:
- A who invested RM300,000 for the duration of 7 months
- B who invested RM420,000 for the duration of 2 months
- C who invested RM230,000 from 1st July 2019 to 8 March 2020.
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