ADIB has Restricted Investment Account (RIA) based on Mudaraba with profit sharing percentages of 12% for RIA and the remaining profit kept by the bank. Hospitality industry financing is one of the investments categorized under RIA contract. ADIB invested AED 158,015 with a reputable hospilatality industry company for one year with the agreement to share the profit of 62% (ADIB) and the remaining profit going to the hospitality industry client. At the end of the year the real estate company earned AED 40,105 as profit. What is the rate of return for RIA holders
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ADIB has Restricted Investment Account (RIA) based on Mudaraba with profit sharing percentages of 12% for RIA and the remaining profit kept by the bank. Hospitality industry financing is one of the investments categorized under RIA contract. ADIB invested AED 158,015 with a reputable hospilatality industry company for one year with the agreement to share the profit of 62% (ADIB) and the remaining profit going to the hospitality industry client. At the end of the year the real estate company earned AED 40,105 as profit. What is the
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- Bank Al-Izz provided working capital to Tijarah Construction. based on the principle of musharakah mutanaqisah amounting to OR 400,000. Profit and loss sharing ratio as agreed by both parties is similar to the ratio of capital contribution which is 40:60 (Bank: Customer) at the beginning of the contract. The repayment shall be equal throughout the contract period. The profit and loss for the above project is as follows: Year 1 Loss of OR 180,000 Year 2 Profit of OR 150,000 Year 3 Profit of OR 220,000 Year 4 Loss of OR 80 000 Determine the profits or lasses to be recognised by Bank Al-Izz for Year 1 Year 2 Year 3 Year 4Both customer and bank enter into a musharakah contract which requires RM7 million of capital investment. The Islamic bank makes a contribution of RM4 million, while the remaining of the capital contributed by the customer. The agreed profit sharing ratio is 60:40 (60 percent to bank and 40 percent to customer). Loss of RM 1.5 million is incurred at the end of the investment period. Compute the amount of loss bare by the customer.Bank Al-Izz provided working capital to Tijarah Construction. based on the principle of musharakah mutanaqisah amounting to OR 400,000. Profit and loss sharing ratio as agreed by both parties is similar to the ratio of capital contribution which is 40:60 (Bank: Customer) at the beginning of the contract. The repayment shall be equal throughout the contract period. The profit and loss for the above project is as follows: Year 1 Loss of OR 180,000 Year 2 Profit of OR 150,000 Year 3 Profit of OR 220,000 Year 4 Loss of OR 80,000 Determine the profits or losses to be recognised by Bank Al-Izz for Year 1 Year 2 Year 3 Year 4 II
- Bank Al-Izz provided working capital to Tijarah Construction. based on the principle of musharakah mutanaqisah amounting to OR 400,000. Profit and loss sharing ratio as agreed by both parties is similar to the ratio of capital contribution which is 40:60 (Bank: Customer) at the beginning of the contract. The repayment shall be equal throughout the contract period. The profit and loss for the above project is as follows: Year 1 Loss of OR 180,000 Year 2 Profit of OR 150,000 Year 3 Profit of OR 220,000 Year 4 Loss of OR 80,000 Determine the profits or losses to be recognised by Bank Al-Izz for Year 1 Year 2 Year 3 Year 4Dunder Corporation has an existing loan in the amount of $8 million with an annual interest rate of 6.0%. The company provides an internal company-prepared financial statement to the bank under the loan agreement. Two competing bank: have offered to replace Dunder Corporation's existing loan agreement with a new one. Sunset Lending Bank has offere to loan Dunder $8 million at a rate of 5.2% but requires Dunder to provide financial statements that have been reviewed by a CPA firm. Big Top Bank has offered to loan Dunder $8 million at a rate of 4.4% but requires Dunder to provide financial statements that have been audited by a CPA firm. Dunder Corporation's controller approached a CPA firm and was given an estimated cost of $29,000 to perform a review and $51,000 to perform an audit. Read the requirements. (Enter amounts in dollars, not millions, throughout.) of the lower information risk. A review report provides moderate users. Compared to a review report, an audit provides further…Company A has entered into a mudharabah contract with Bank Shari’ah in which the company provides monetary capital of RM1,000,000. Company B who had agreed to invest RM1,000,000. The profit sharing between three of them is 1:1:1 for Company A, Company B and the Bank respectively. Bank Shari’ah entered into another mudharabah contract with Company C to undertake a housing development project. Bank’s contribution in this project was RM2,000,000 and they had agreed on the profit-sharing ratio of 80 : 20 (Bank : Company C). Assume the following results of the venture: Year Profit / (Loss) 1 (750,000) 2 700,000 3 1,500,000 You are required to: i- Determine the profit/loss of the above transactions. Show how profit/loss will be allocated for all parties involved. ii- Prepare accounting entries and T-accounts for URIA and Mudarabah financing.
- Monterry Corporation has an existing loan in the amount of 7 million with an annual interest rate of 6.5% The company provides an internal company - prepared financial statement to the bank under the loan agreement. Two competing banks have offered to replace Monterrey Corporation's existing loan agreement with a new one. Southwest National Bank has offered to loan Monterrey 7 million at a rate of 5.5% but requires Monterrey to provide financial statements that have been reviewed by a CPA firm. First City Bank has offered to loan Monterrey 7 million at a rate of 4.5% but requires to provide financial statements that have been audited by a CPA firm. Monterrey Corporation's controller approached a CPA firm and was given an estimated cost of $45,000 to perform a review and $80,000 to perform an audit.The XYZ customer service branch maintains a disbursement account which is funded by the main office. The branch needs funds for daily disbursements of P40,000 and a minimum balance of P20,000. The cost to transfer funds from the main office to the branch averages P300. The return on money marketable securities is 5%. XYZ Corporation agreed with its major supplier a credit term of 3/30, n/75. Using 360 days in a year, what would the compound annualize cost of this payable?Participants contributed 100,000 MAD to takaful Funds that will be managed based on hybrid model. According to the conducted contract between the participants and the operator, this latter is entitled to a fixed Wakal fee of 10% as a Wakil. The operator divides the funds into PAS and PA based on the following ratios 50:50. PA generated a profit of 15%. The estimated cost of claims and its related operating expenses is 30,000 MAD. Participants and Takaful operator agreed to share any surplus according to the following ratios: 70:30. How much would the participants and the operator get by maturity date?
- COCO Inc. has a credit agreement which is revolving fund with its bank under which it can borrow up to Php10 million at an annual interest rate of 12 percent. The firm is required to maintain a 10 percent compensating balance on any funds borrowed under this agreement and to pay a 0.5 percent commitment fee on the unused portion of the credit line. Determine the annual financing cost to COCO Inc. of borrowing Php4 million. a. 13.3% b. 14.7% c. 14.2% d. 13.9%SAPPHIRE CO. charges new franchisees an initial fee of P5,000,000. Of this amount, P2,000,000 is payable in cash when the agreement is signed, and the remainder is to be paid in three equal annual installments which are evidenced by an interest-bearing promissory note. In consideration therefore, SAPPHIRE CO. will assist in locating the business site, conduct a market study to estimate earnings potential, supervise construction of a building, and provide initial training to employees. On December 3, 2021, Sapphire Co. entered into a franchising agreement with EMERALD, INC. by the end of the year, SAPPHIRE CO. has completed about 25% of the initial services at a cost of P300,000 and it has ascertained that collection of the notes is reasonably assured. For 2021, SAPPHIRE CO. should recognized franchise revenue of:A. 5,000,000 C. 1,700,000B. 2,000,000Please answer in good accounting form. Thankyou SAPPHIRE CO. charges new franchisees an initial fee of P5,000,000. Of this amount, P2,000,000 is payable in cash when the agreement is signed, and the remainder is to be paid in three equal annual installments which are evidenced by an interest-bearing promissory note. In consideration therefore, SAPPHIRE CO. will assist in locating the business site, conduct a market study to estimate earnings potential, supervise construction of a building, and provide initial training to employees. On December 3, 2021, Sapphire Co. entered into a franchising agreement with EMERALD, INC. by the end of the year, SAPPHIRE CO. has completed about 25% of the initial services at a cost of P300,000 and it has ascertained that collection of the notes is reasonably assured. For 2021, SAPPHIRE CO. should recognized franchise revenue of:A. 5,000,000 C. 1,700,000B. 2,000,000