please answer all questions/EXERCISES 2,3,4 And 5

Ex.2. Mr All is a manufacturer of cement and requires funding to replace one of its man chines being vital for production process Machine is manufactured internationally and requires import from Dubai Estimated purchase price in Dubai is AED 50,000. Mr. Khan huving an office in Islamabad is doing the business of import of such machinery for 2% commission of import price paid to vendors. Transportation and insurance etc, is paid by the local purchaser. Mr. Ali is very trusted customer of Albaraka bank who agreed to supply the machine to Mr. Ali Machine imported by Mr. Khan on request and claimed following expenses from Albaraka bank Chapter 2- Murabaha Financing 48.000 960 500 480 49.940 AED AED AED AED AED Description Payment to vendor Commission Transportation Insurance Total Required:- If exchange rate is 25:1 what is the amount to be paid to import agent? b. If exchange rate on the day of contract with Mr. Ali is 26:1 what is the cost of Murabaha to be used for charging profit? What is selling price if 12% markup is charged by bank? d. If amount is agreed to be paid in two equal annual installments what is amount of each installment? C Ex.3. XYZ Company is a manufacturer of soft drinks requests financing facility to Dubai Islamic bank for purchase of fruits amounting to Rs: 500,000 on July 1" 2010. Bank agreed to the proposal on following terms. Fruit shall be provided in Multan and transportation is responsibility of XYZ. 8% profit shall be charged for six months. Bank has the authority to sell inventory of XYZ in case of default for more than 2 months and penalty of 5% on the amount due shall be charged if payment is not made within 15 days of due date. Miscellaneous expenses incurred by bank in Multan (being cost of living and daily allowance to procurement officer) for exe- cuting purchase amounting to Rs: 30,000. Transportation cost is Rs: 40,000 paid to Mul- tan Karachi goods forwarding agency and transit insurance is Rs: 20,000 paid to Adamjee insurance company Purchase contract signed between bank and supplier on July 7 2010 while offer pance between customer and bank completed on July 10 2010. Payment and b. Calculate amount of penalty if payment made by XYZ on (1) January 6 Why amount of penalty is different in above three options if any? d. What is the effect of this transaction on financial reporting of Dubai Islamic payment made () January 26 2011 if payment made on this date. on (1) July " 2010 (1) July 7 2010 (iii) July 10 2010 (iv) January 12 Ex.. ABC Company is a manufacturer of furniture contacted to First Islamic Bank 85,000 which accepted by ABC and signed the document of Murabaha for payment to financing of a machine costing Rs: 100.000. Bank provided a used machine for Agriculture and App-Mascus bodastry Novoking for investment by this to Rs: 450 000 made to supplier on July 20" 2010, Required:- a Calculate selling price and profit on Murabaha. January 26 2011 () February 25 2011. made in six months Required: Is it a valid sale? If not, why? Enlist the conditions of valid Murabaha sale. Ex.5. Mr.ABC requested to Margalla bank to purchase a car for him from Capital moon, Cost of car is Rs: 500,000. Bank demanded Hamish Jiddiya of Rs; 100,000 which we purchased the car and constructive possession taken over. Chapter 2- Murabaha Financing deposited by customer to be accounted for against price after execution of contract. Bank Required:- 1. What is amount of refund/claim if ABC failed in execution of transaction and car war disposed of by bank at 2% discount? 2. Suppose contract was executed with 10% profit per annum. Amount is payable withi one year in four equal installments. What is amount of installment under simple formula What is amount of installment under time value formula? Explain the reason of diffe ence 3. What is IRR if calculation of installments is made through simple formula? Murababa in action Margalla Islamic Bank installed two meters, onent exit point of Ravi Gas Co, and other to try point of Bolan Fertilizers, because risk taking is the condition of Murabaha for seller, Ri of the back is transporting the gas between two premises from supplier to user of gas, Ban charged a certain percentage of profit on payment made to supplier, to be recovered from chaser. The difference in conventional loan and Murrababa in this transaction is the risk bear of MIB during transportation of gas