The relationship between the Sharia'a Islamic Bank and its investment account holders isgoverned by the Mudaraba contract, as shown in Table 4.1.Table 4.1 Sharia'a Islamic Bank: Mudaraba accountsAverage funds available for investmentDinarsDinarsInvestment rateShareholders130,000,000100%Investment Accounts: One Year150,000,000450,000,000700,000,00090%Investment Accounts: Six Months80%1300,000,0001430,000,000Mudarib15%Investment Savings Accounts*Total funds available for investment60%Profit-sharing ratio:Investment Accounts: One YearDepositors85%Investment Accounts: Six MonthsInvestment Savings AccountsIncome for allocation20%80%30%70%Income to be allocated75,000,000* These are investment accounts for short periodsCase Questions:1. Calculate the profit allocated to shareholders and toeach class of profit-sharing accountsbefore and after the Mudarib share has been paid.2.Calculate the rate of return for shareholders and eachclass of investment account after theMudarib share has been paid.

The relationship between the Sharia’a Islamic Bank and its investment account holders is governed by the Mudaraba contract, as shown in Table 4.1. Table 4.1 Sharia'a Islamic Bank: Mudaraba accounts Average funds available for investment Dinars Dinars Investment rate 100% 90% Shareholders 130,000,000 Investment Accounts: One Year 150,000,000 450,000,000 700,000,000 80% 60% Investment Accounts: Six Months Investment Savings Accounts 1300,000,000 1430,000,000 Total funds available for investment Profit-sharing ratio: Investment Accounts: One Year Mudarib Depositors 85% 15% Investment Accounts: Six Months 20% 80% Investment Savings Accounts Income for allocation 30% 70% Income to be allocated 75,000,000 * These are investment accounts for short periods Case Questions: 1. Calculate the profit allocated to shareholders and to each class of profit-sharing accounts before and after the Mudarib share has been paid. 2.Calculate the rate of return for shareholders and each class of investment account after the Mudarib share has been paid.

The relationship between the Sharia’a Islamic Bank and its investment account holders is governed by the Mudaraba contract, as shown in Table 4.1. Table 4.1 Sharia'a Islamic Bank: Mudaraba accounts Average funds available for investment Dinars Dinars Investment rate 100% 90% Shareholders 130,000,000 Investment Accounts: One Year 150,000,000 450,000,000 700,000,000 80% 60% Investment Accounts: Six Months Investment Savings Accounts 1300,000,000 1430,000,000 Total funds available for investment Profit-sharing ratio: Investment Accounts: One Year Mudarib Depositors 85% 15% Investment Accounts: Six Months 20% 80% Investment Savings Accounts Income for allocation 30% 70% Income to be allocated 75,000,000 * These are investment accounts for short periods Case Questions: 1. Calculate the profit allocated to shareholders and to each class of profit-sharing accounts before and after the Mudarib share has been paid. 2.Calculate the rate of return for shareholders and each class of investment account after the Mudarib share has been paid.

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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