Suraya wants to Buy a building. He went toapply financing with standard chartered. Afterproper assessment, standard chartered bankprovides a financing facility under Murabahah tothe Purchase Orderer principle.Financing amount: RM800,000Rate of return: 8.2%Financing tenure: 10 yearsAt the end of the contract, Suraya still has anoutstanding amount of RM40,000. As part ofcondition of the Murabahah contract, Surayawill be charged an annual penalty fee of 4% forany outstanding amount due and the amountwill be donated to charitable organisation.Question: (a) Record journal entries to record allof the above transactions in standard charteredbank's books (Please show yourworkings/calculations).

Journal- Journalizing is the process by which businesses record their transactions in a systematic…

Suraya wants to Buy a building. He went to apply financing with standard chartered. After proper assessment, standard chartered bank provides a financing facility under Murabahah to the Purchase Orderer principle. Financing amount: RM800,000 Rate of return: 8.2% Financing tonuro: 10 years

Suraya wants to Buy a building. He went to apply financing with standard chartered. After proper assessment, standard chartered bank provides a financing facility under Murabahah to the Purchase Orderer principle. Financing amount: RM800,000 Rate of return: 8.2% Financing tonuro: 10 years

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

Suraya wants to Buy a building. He went to
apply financing with standard chartered. After
proper assessment, standard chartered bank
provides a financing facility under Murabahah to
the Purchase Orderer principle.
Financing amount: RM800,000
Rate of return: 8.2%
Financing tenure: 10 years
At the end of the contract, Suraya still has an
outstanding amount of RM40,000. As part of
condition of the Murabahah contract, Suraya
will be charged an annual penalty fee of 4% for
any outstanding amount due and the amount
will be donated to charitable organisation.
Question: (a) Record journal entries to record all
of the above transactions in standard chartered
bank's books (Please show your
workings/calculations).

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