QUESTION 3 Sahara Islamic Bank Berhad bank purchased the property from Angsana Property Berhad on 1 January 2017 for RM7,000,000. Sahara Islamic Bank entered into an Ijarah contract with Sapura Berhad to lease a property for office use for ten years. The bank also incurred legal fees of RM70,000 relating to the Ijarah contract, which the bank considered to be material. The monthly rental was RM1,200,000, paid at the end of every year. The estimated useful life of the property is ten years. (Hint: use the expected useful life as a basis to calculate depreciation). Every year, the bank paid maintenance expenses of RM50,000. However, in the year 2018, Sapura Berhad has to incur RM25,000 to repair the property after getting consent from the bank. The property is then sold to Sapura Berhad on the 10th year after finishing the lease period for RM 500,000. You are required to: a) Prepare journal entries to record the above Ijarah contract for Sahara Islamic Bank Berhad for 2017, 2018 and the final year of the leasing period. Assume that the lease was treated as Ijarah Muntahia Bitamleek through a sale for a token consideration (agreed to be at RM500,000 at the end of useful life). (15 marks) b) How the recording will be different if the above contract is Al Ijarah Thumma Al- Bai (AITAB). Support your answer with all the journal entries for the first year of the contract. (10 marks) [Total:25 marks End of Questions 5 QUESTION 3 Sahara Islamic Bank Berhad bank purchased the property from Angsana Property Berhad on 1 January 2017 for RM7,000,000. Sahara Islamic Bank entered into an Ijarah contract with Sapura Berhad to lease a property for office use for ten years. The bank also incurred legal fees of RM70,000 relating to the Ijarah contract, which the bank considered to be material. The monthly rental was RM1,200,000, paid at the end of every year. The estimated useful life of the property is ten years. (Hint: use the expected useful life as a basis to calculate depreciation). Every year, the bank paid maintenance expenses of RM50,000. However, in the year 2018, Sapura Berhad has to incur RM25,000 to repair the property after getting consent from the bank. The property is then sold to Sapura Berhad on the 10th year after finishing the lease period for RM 500,000. You are required to: a) Prepare journal entries to record the above Ijarah contract for Sahara Islamic Bank Berhad for 2017, 2018 and the final year of the leasing period. Assume that the lease was treated as Ijarah Muntahia Bitamleek through a sale for a token consideration (agreed to be at RM500,000 at the end of useful life). (15 marks) b) How the recording will be different if the above contract is Al Ijarah Thumma Al- Bai (AITAB). Support your answer with all the journal entries for the first year of the contract. (10 marks) [Total:25 marks End of Questions 5
