Question
Nuuh Islamic Bank (NIB) as Rabbul Mal had agreed to contribute monetary capital to Muadz Manufacturing (MM Mudharib) based on a two-year Mudharabah Al- Muqayyadah
Nuuh Islamic Bank (NIB) as Rabbul Mal had agreed to contribute monetary capital to Muadz Manufacturing (MM Mudharib) based on a two-year Mudharabah Al- Muqayyadah financing contract. Profit sharing ratio (PSR) is 3:1 between NIB and MM respectively. Each Period method were agreed between the parties, and share of profits or losses for any period shall be recognised in its account for that period. Assume the following as results of this venture: Year Event Amount (RM) 0 Capital provided to MM 60 million 1 Loss (4 million) 2 Profit 150 million End of Year 2 Repayment of Mudharabah capital Being balance of Mudharabah capital* *The amount is to be determined by you as the Banks accountant Required: As the Banks accountant, please prepare the necessary journal entries to recognise asset and profit/loss for events in Year 0 until Year 2. (Hint: There are eight (8) entries concerned.) (
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