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    Murabahah Accounting Question 7-3 Page 250 - IE 1002 Reporting of Islamic Financial Transactions

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    Solomon Tekalign
    This document outlines the accounting for a murabahah transaction over 5 years. It shows the cost of equipment as RM1,000,000 with a markup of 10% per year for 5 years, totaling RM500,000 in markup. The total sales value is RM1,500,000 to be paid in 5 annual installments of RM300,000 each. It provides the accounting entries for purchasing the equipment, selling it through murabahah financing, receiving installment payments and profit amounts each year, and providing a discount on the final payment in the 5th year.

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    Murabahah Accounting Question 7-3 Page 250 - IE 1002 Reporting of Islamic Financial Transactions

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    Solomon Tekalign
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    This document outlines the accounting for a murabahah transaction over 5 years. It shows the cost of equipment as RM1,000,000 with a markup of 10% per year for 5 years, totaling RM500,000 in markup. The total sales value is RM1,500,000 to be paid in 5 annual installments of RM300,000 each. It provides the accounting entries for purchasing the equipment, selling it through murabahah financing, receiving installment payments and profit amounts each year, and providing a discount on the final payment in the 5th year.

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    This document outlines the accounting for a murabahah transaction over 5 years. It shows the cost of equipment as RM1,000,000 with a markup of 10% per year for 5 years, totaling RM500,000 in markup. The total sales value is RM1,500,000 to be paid in 5 annual installments of RM300,000 each. It provides the accounting entries for purchasing the equipment, selling it through murabahah financing, receiving installment payments and profit amounts each year, and providing a discount on the final payment in the 5th year.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xls, pdf, or txt
    6 views4 pages

    Murabahah Accounting Question 7-3 Page 250 - IE 1002 Reporting of Islamic Financial Transactions

    Uploaded by

    Solomon Tekalign
    This document outlines the accounting for a murabahah transaction over 5 years. It shows the cost of equipment as RM1,000,000 with a markup of 10% per year for 5 years, totaling RM500,000 in markup. The total sales value is RM1,500,000 to be paid in 5 annual installments of RM300,000 each. It provides the accounting entries for purchasing the equipment, selling it through murabahah financing, receiving installment payments and profit amounts each year, and providing a discount on the final payment in the 5th year.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xls, pdf, or txt
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    Murabahah Accounting

    Question 7-3 page 250 - IE 1002 Reporting of Islamic Financial Transactions

    Cost of Equipment 1,000,000.00


    mark Up 0.10 per anum
    No of year 5.00
    Total mark up 0.50
    Mark up value 500,000.00

    Total Sales Value 1,500,000.00


    Instalment 300,000.00 per anum

    Installment Details
    cost 200,000.00
    profit 100,000.00
    total 300,000.00

    on purchase 31-Dec Equipment 1,000,000.00


    A/Por cash 1,000,000.00

    on sales Murabaha Financing-MC Bhd 1,500,000.00


    Equipment 1,000,000.00
    Deffered Profit 500,000.00

    year 1,2,4 31-Dec Cash 300,000.00


    Murabaha Financing-MC Bhd 300,000.00

    31-Dec Deffered Profit 100,000.00


    Profit from Murabaha Financing 100,000.00

    year 3 31-Dec A/R -MC Bhd 300,000.00


    Murabaha Financing-MC Bhd 300,000.00
    31-Dec Deffered Profit 100,000.00
    Profit from Murabaha Financing 100,000.00

    year 4 28-Feb Cash 315,000.00


    A/R -MC Bhd 300,000.00
    A/P Charity Account - Penalty 15,000.00

    year 5 31-Jan Cash 254,166.67


    Murabaha Financing-MC Bhd 254,166.67

    31-Jan Deffered Profit 100,000.00


    Profit from Murabaha Financing 54,166.67
    Murabaha Financing-MC Bhd 45,833.33

    note1 Final settlement 254.166 = Total balance RM 300.000- rebate (irba) RM 45.833*
    * Month No of Month Monthly Profit
    Jan 1.00 8,333.33
    Feb-Dec 11.00 91,666.67
    Total 12.00 100,000.00

    ** Discount RM 45,833 = 0% x Jan profit RM 8,333 + 50% x Feb - Dec profit RM 91,667
    accrual for profit

    penalty

    note 1

    real profit*
    discount**

    00- rebate (irba) RM 45.833*


    Discount Profit Net after Discount
    no discount 8,333.33
    50% 45,833.33
    54,166.67

    50% x Feb - Dec profit RM 91,667

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