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