Topic: Islamic Accounting

questions1: Answer the following sections:

Section1 :

a manufacturer of plastic containers. The statement of financial position as of December 31^st, 2019, is shown in Table 1 below.

The following have not been adjusted:

1. The personal drawings of Annwar for the year amounted to RM200,000.
2. Annwar also donated RM20,000 to his favorite charity in November.
3. There is obsolete stock amounting to RM5,000.

Required:

Determine the zakat payable by Annwar.

Section 2 :

Table 2 shows the statement of financial position of AAM Company as of December 31, 2019.

The following have not been adjusted:

1. Inventory includes work in progress and raw materials valued at RM10,000 and RM5,000, respectively.
2. Prepayment is related to insurance and road tax.
3. Included in the bank is fixed deposit used to secure financing facility from Bank A amounting to RM10,000.
4. Within the term loan, RM25,000 is loan payable during the next year. This has not been reclassified.
5. One customer was declared bankrupt. He owed RM5,000.

Required:

Calculate zakat payable using:

1. The net assets method.
2. The net invested funds method.

RM RM Current liabilities Trade creditors Accrued expenses 5,000 20,000 Current assets Cash in hand Bank Trade debtors Closing stock Work in progress 30,000 15,000 50,000 45,000 42,000 Fixed assets Property, plant, and equipment Real estate investments 100,000 100,000 442.000 Capital Reserves Profit 267,000 120,000 30,000 442,000 RM RM Current assets Accounts receivable Inventory Prepayments Cash & bank Dividends receivable 100,000 70,000 10,000 54,000 1,000 Current liabilities Accounts payable Overdraft Dividend payable Tax payable 60,000 5,000 2,000 5,000 Long-term loan Term loan 200,000 Fixed assets Property, plant, and equipment Real estate investments 110,000 100,000 455,000 Share capital Reserves Profit 100,000 60,000 13,000 445,000 RM RM Current liabilities Trade creditors Accrued expenses 5,000 20,000 Current assets Cash in hand Bank Trade debtors Closing stock Work in progress 30,000 15,000 50,000 45,000 42,000 Fixed assets Property, plant, and equipment Real estate investments 100,000 100,000 442.000 Capital Reserves Profit 267,000 120,000 30,000 442,000 RM RM Current assets Accounts receivable Inventory Prepayments Cash & bank Dividends receivable 100,000 70,000 10,000 54,000 1,000 Current liabilities Accounts payable Overdraft Dividend payable Tax payable 60,000 5,000 2,000 5,000 Long-term loan Term loan 200,000 Fixed assets Property, plant, and equipment Real estate investments 110,000 100,000 455,000 Share capital Reserves Profit 100,000 60,000 13,000 445,000