Alinma Islamic Bank execute a Mudharabah contract with QST Berhad and the value of the contract is RM650,000.

It has agr
and QST Berhad to the ratio of 75:25. The duration of the contract is four years. The profit or loss incurred for the Mudharaba

Profit/(Loss)
Year
(RM) Alinma IB
1 -15,000 -15,000
2 -5,000 -5000
3 35,000 75/100 * 35,000 = 26,250
4 92,500 75/100 * 92,500 = 69,375

Assume Alinma Islamic Bank determines its Mudharabah profit at the end of of each period method

Prepare the journal entries for year 1 to year 4 in the book of Alinma Islamic Bank to record the above transactions.

Y0 Debit
Dr Mudharabah Financing a/c 650,000
Cr Cash

y1 Dr Profit and loss a/c 15,000

Cr Mudharabah Financing a/c

Y2 Dr Profit and loss a/c 5,000

Cr Mudharabah Financing a/c

Y3 Dr. Cash 26,250

cr Profit and loss a/c

y4 Dr. Cash 69,375

cr Profit and loss a/c

Dr Cash 630,000
Cr Mudharabah Financing a/c
(650,000 - 15,000 - 5,000)

Profit/(Loss)
Year
(RM)
1 -15,000
2 -5,000
3 35,000
4 92,500
107,500
 Debit
Y0 Dr Mudharabah Financing a/c 650,000
Cr Cash

Y4 Dr Cash 650,000
Cr Mudharabah Financing a/c

Dr Cash 80,625
Cr Profit and loss a/c
he value of the contract is RM650,000. It has agreed that the profit will share between Alinma Islamic Bank
ars. The profit or loss incurred for the Mudharabah contract is as follows

QST
(-)
(-)
25/100 * 35,000 = 8,750
25/100 * 92,500 = 23,125

end of of each period method

amic Bank to record the above transactions.

Credit

650,000

15,000

5000

26,250

69,375

630,000

IB qst

75/100 * 107,500 = 80,625

Credit

650,000

650,000

80,625