Question
Zamalah Bank Berhad provides a financing facility based on Murabahah to the Purchase Orderer principles to Hanadzlah for the purchase of a house. The financing
Zamalah Bank Berhad provides a financing facility based on Murabahah to the
Purchase Orderer principles to Hanadzlah for the purchase of a house. The financing
is amounting to RM400,000 at a constant rate of return of 5.5% for a period of 10
years. The annual installment payment is RM62,000. At the end of the contract,
Hanadzlah still owes the cumulative amount of repayments amounting to RM10,000.
As part of the normal requirements of the bank, the customers will be charged a
penalty fee of 5% for any outstanding amount due at the end of the contract. The
bank's policy is to recognize the income received from penalty fee as part of the
income to the bank.
You are required to:
i. Prepare extracts of the balance sheet and income statement of the bank from
the beginning of the contract up to Year 5 to show the amount of net receivable
and Murabahah income.
(24 Marks)
ii. Based on the case above, please comment on the bank's policy of charging
penalty on outstanding amount due of Murabahah financing repayment.
(6 Marks)
b) Islamic Bank Berhad has decided to pay zakat on business wealth at the end of
December 2022. The balance sheets provided by the bank can be found in Appendix
1.
As the accountant at the bank, you are required to calculate the zakat payable amount
for Islamic Bank Berhad using the Net Assets Method and Net Invested Funds Method.
(10 Marks)
ASSETS RM
Cash and balances with banks and agents 100,500
Deposits and placements with financial institutions 280,400
Dealing securities 570,000
Investment securities 865,900
Musharakah financing 3,565,500
Ijarah financing 200,800
Bills receivable 260,000
Fixed assets 3,600,700
Intangible assets 250,800
Statutory deposit with Bank Negara Malaysia (BNM) 430,600
TOTAL 10,125,200
LIABILITIES
Deposits from customers 3,400,550
Deposits and placements of banks and other financial institutions 780,200
Bills payable 740,000
Long term loan 300,900
Provisions for investment risk 45,600
TOTAL 5,267,250
SHAREHOLDERS' FUNDS
Share capital 2,500,950
Retained earnings 890,300
Reserves 1,466,700
TOTAL 4,857,950
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