Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose A, B, C and D are four persons forming Shirkat al Amwal (Investment Partnership), with following detail. Capital of all partners is same, except

image text in transcribed

Suppose A, B, C and D are four persons forming Shirkat al Amwal (Investment Partnership), with following detail. Capital of all partners is same, except of B whose capital is more than other four partners. Partner A is more experienced so he would be giving more time to business as compared to other partners. Partner C would be investing a portion of capital in Mudaraba partnership with some other independent person as Rab ul Mal (provider of capital). Partner D is also doing a private job, so he is unable to give proper time to business, unlike his other partners. Half of the total capital was invested in stocks and half in real estate business. After the end of one year, business realized a profit of 50% on capital from real estate business. However, from stocks, the business got 25% loss on other half of capital. Suppose the duration of partnership is one year, which means that partners will get back their portion of capital along with the share of Profit and Loss. Assume the capital amount of each partner from your own. Considering the above- mentioned scenario, provide, how much profit amount will each partner get after the deduction of loss? What was the profit distribution ratio for each partner? (Only mention the amounts and percentages along with no more than 2 lined reason of this distribution for each partner.)

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

Understanding And Auditing IT Systems Volume 2

Authors: Young-Woon Min

2nd Edition

1257758837, 978-1257758838

More Books

Students also viewed these Accounting questions

Question

Ince resou

Answered: 1 week ago