Maybank Islamic gave murabaha financing to Ahmad to purchase a house that cost the bank RM 200,000 over a 10-year period. The markup was a constant rate of return of 10% per annum. The instalments are to be paid equally over the 10 years. The bank recognises profit equally over the period. Ahmad paid the instalments regularly for the first 4 years and at the end of the fifth year he redeemed the financing. Maybank Islamic agreed to give Ahmad 80% of the unearned deferred profit at the end of year 5, after taking the full profit for year 5. Which of the following is the correct entry on receipt of instalments of year 1, including recognition of profit? Dr Cash 40,000 Cr Murabaha Financing 40,000 & Dr Unearned Profit 30,000 Cr Profit and Loss 30,000 Dr Cash 40,000 Cr Murabaha Financing 40,000 & Dr Unearned Profit 20,000 Cr Profit and Loss 20,000 Dr Cash 40,000 Cr Murabaha Financing 40,000 & Dr Profit and Loss 20,000 Cr Unearned Profit 20,000 Dr Murabaha Financing 40,000 Cr Cash 40,000 & Dr Profit and Loss 20,000 Cr Unearned Profit 20,000}
Maybank Islamic gave murabaha financing to Ahmad to purchase a house that cost the bank RM 200,000 over a 10-year period. The markup was a constant rate of return of 10% per annum. The instalments are to be paid equally over the 10 years. The bank recognises profit equally over the period. Ahmad paid the instalments regularly for the first 4 years and at the end of the fifth year he redeemed the financing. Maybank Islamic agreed to give Ahmad 80% of the unearned deferred profit at the end of year 5, after taking the full profit for year 5. Which of the following is the correct entry on receipt of instalments of year 1, including recognition of profit? Dr Cash 40,000 Cr Murabaha Financing 40,000 & Dr Unearned Profit 30,000 Cr Profit and Loss 30,000 Dr Cash 40,000 Cr Murabaha Financing 40,000 & Dr Unearned Profit 20,000 Cr Profit and Loss 20,000 Dr Cash 40,000 Cr Murabaha Financing 40,000 & Dr Profit and Loss 20,000 Cr Unearned Profit 20,000 Dr Murabaha Financing 40,000 Cr Cash 40,000 & Dr Profit and Loss 20,000 Cr Unearned Profit 20,000}
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Maybank Islamic gave murabaha financing to Ahmad to purchase a house that cost the bank RM 200,000 over a 10-year period. The markup was a constant
- Dr Cash 40,000 Cr Murabaha Financing 40,000 & Dr Unearned Profit 30,000 Cr
Profit and Loss 30,000 - Dr Cash 40,000 Cr Murabaha Financing 40,000 & Dr Unearned Profit 20,000 Cr Profit and Loss 20,000
- Dr Cash 40,000 Cr Murabaha Financing 40,000 & Dr Profit and Loss 20,000 Cr Unearned Profit 20,000
- Dr Murabaha Financing 40,000 Cr Cash 40,000 & Dr Profit and Loss 20,000 Cr Unearned Profit 20,000}
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