Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Q.2 Read the following case and make its schedule accordingly. Mr. Shakir requested Al-Barkah Islamic bank (AIB) for house financing on Diminishing Musharakah basis. AIB

Q.2 Read the following case and make its schedule accordingly. Mr. Shakir requested Al-Barkah Islamic bank (AIB) for house financing on Diminishing Musharakah basis. AIB accepted the request and agreed to finance. To create Shirkat-ul-milk, Islamic bank and Shakir jointly bought a plot worth Rs. 10 mill in which Shakir's share was 30% and remaining was provided by Islamic bank. House construction, its renovation and others actual expenses were equal to Rs. 20.5 mill. Islamic bank financed 60% while remaining was provided by Shakir. After that Islamic bank gives its share in the house to Shakir on rent through lease contract. Rent of Islamic banks share in house was decided Rs. 80,000 / month [post paid rent]. In contract it was decided through a unilateral promise that Shakir will start to purchase Islamic bank's share from 3rd month of lease contract and he will buy each share at the beginning of each month. In the start of 3rd month of lease contract, market value of the house was estimated Rs. 40 mill. Shakir will buy Islamic bank's share in 20 equal installment.

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

Principles Of Auditing And Other Assurance Services

Authors: Ray Whittington, Kurt Pany

22nd Edition

126059808X, 978-1260598087

More Books

Students also viewed these Accounting questions

Question

Identify ways to increase your selfesteem.

Answered: 1 week ago