Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please could you answer me the correct way Question 2. Part I Bank purchased a machine from the seller RM200,000 by cash and the bank

please could you answer me the correct way image text in transcribed

Question 2. Part I Bank purchased a machine from the seller RM200,000 by cash and the bank leased to Mahmood the machine for 5 years using Ijarah Muntahia Bittamleek contract. Mahmood paid RM50,000 per year as Ijarah payment, At the end of year 5, the bank agreed to give the machine as a gift to Mahmood, thereby enabling the transfer of the ownership of the property to Mahmood. 2 marks Required: Prepare journal entries to record the following transaction: a) At the inception of a machine (at the time of contract). b) When the installment is received in 1st year. c) Transfer of ownership at the end of year 5. Part II. The bank and client executed a Murabahah contract at an agreed price of RM240,000 (RM200,000 cost and RM40,000 profit for a machine. The bank would receive payment by installment of RM48,000 per year for 5 years. 2 marks Required: Prepare journal entries to record the following transaction: a) At the inception of a machine (at the time of contract). b) When the installment is received in 1st year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting in an Economic Context

Authors: Jamie Pratt

8th Edition

9781118139424, 9781118139431, 470635290, 1118139429, 1118139437, 978-0470635292

More Books

Students also viewed these Accounting questions