ank provide an investment as Rabbul Maal with restriction to mudarib that he invest oil sector, Mudarib contributes none of his own capital into the project. The bank contributes capital of 100,000 on a Mudaraba basis. No other capital sources are used. PLS is agreed at a ratio of 50/50. Profits are paid to the Mudarib as a reward for the successful operation of the business. The balance of any profit is paid to the other partner(s) in the scheme. Required: Provide the solutions/ distribution of profit/loss of following potential outcomes: 1) Profits of 1000 are made 2) Losses of 500 are made without negligence of Mudarib. 3) Losses of 500 are made with negligence of Mudarib.

ank provide an investment as Rabbul Maal with restriction to mudarib that he invest oil sector, Mudarib contributes none of his own capital into the project. The bank contributes capital of 100,000 on a Mudaraba basis. No other capital sources are used. PLS is agreed at a ratio of 50/50. Profits are paid to the Mudarib as a reward for the successful operation of the business. The balance of any profit is paid to the other partner(s) in the scheme. Required: Provide the solutions/ distribution of profit/loss of following potential outcomes: 1) Profits of 1000 are made 2) Losses of 500 are made without negligence of Mudarib. 3) Losses of 500 are made with negligence of Mudarib.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter19: Corporations: Distributions Not In Complete Liquidation

Section: Chapter Questions

Problem 8DQ

See similar textbooks

Similar questions

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
Bank invest in project as Sharik (sleeping partner) and the project manager will act as managing partner. Themanaging partner borrows Rs. 10,000 capital from the bank which he invests into the project. This loan must berepaid at the maturity of the project whether profits or losses are made. The bank contributes capital of Rs. 50,000.No other capital sources are used. Profit sharing ratio is agreed at a ratio of 70% to bank and 30 % to managingpartner. The balance of any profit is paid to the other partner(s) in the scheme.Required:Provide the solutions/ distribution of profit/loss of following potential outcomes:1) Profits of Rs. 2,500 are made.2) Losses of Rs. 2,000 are made .3) Identify the type of Musharkah .
Southwestern Wear Inc. has the following balance sheet: The trustees costs total 281,250, and the firm has no accrued taxes or wages. The debentures are subordinated only to the notes payable. If the firm goes bankrupt and liquidates, how much will each class of investors receive if a total of 2.5 million is received from sale of the assets?
D, E, and F are partners in DEF Enterprises. They want to obtain a loan from X, but X does not know any of them, so they asked Y, who is known to X, to represent himself as a partner in DEF Enterprises. X, believing that Y is a partner in DEF enterprises, thus grants the loan of Php180,000.00 to DEF Enterprises. Later, however, DEF Enterprises is unable to pay the loan as its assets amount only to Php120,000.00. How does the payment of the loan be settled: a. D, E, and F shall share in the payment of Php180,000.00 from their separate assets at Php60,000.00 each. b. The assets of DEF Enterprises shall first be exhausted. Thereafter, D, E, and F may be held liable by X from their separate assets at Php20,000.00 each. c. D, E, F, and Y shall share in the payment of Php180,000.00 from their separate assets at Php45,000.00 each. d. The assets of DEF Enterprises shall first be exhausted. Thereafter, D, E, F, and Y may be held liable by Z from their separate assets at Php15,000.00…
Both 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.
Win and Jhim formed a partnership. Win invested cash worth Php85,000 and a machine. On the other hand, Jhim contributed cash worth Php55,000 and equipment which has a mortgage of Php35,000 which Jhim will pay personally. The total capital after the formation was Php360,000. They also agreed to reflect 45:55 capital ratio. No other investment or withdrawal occurred other than mentioned above to reflect their capital ratio agreement. How much is the fair value of the machine?
John invests office equipment with a fair market value of $63,000, manufacturing equipment with a fair market value of $76,000, and cash of $31,000. He owes $28,000, represented by a note on the manufacturing equipment. The amount of John's capital would be a. $170,000 b. $142,000. c. $31,000. d. None of these choices are correct.
Edward Seymour is a financial consultant to Cornish Inc., a real estate syndicate. Cornish Inc. finances and develops commercial real estate (office buildings). The completed projects are then sold as limited partnership interest to individual investors. The syndicate makes a profit on the sale of these partnership interests. Edward provides financial information for the offering projects, which is a document that provides the financial and legal details of the limited partnership offerings. In one of the projects, the bank has financed the construction of a commercial office building at a rate of 10% for the first four years, after which time the rate jumps to 15% of the mortgage. The interest costs are one of the major ongoing costs of a real estate project. Edward has reported prominently in the prospectus that the break-even occupancy for the first four years is 65%. This is the amount of office space that must be leased to cover and general upkeep costs over the first four…
Additional information:• Included in accounts receivable is an account amounting to ₱40,000 which is deemed uncollectible.• The inventory has an estimated selling price of ₱200,000 and estimated costs to sell of ₱20,000.• An unpaid mortgage of ₱20,000 on the land is assumed by the partnership.• The building is under-depreciated by ₱50,000.• The building also has an unpaid mortgage amounting to ₱30,000, but the mortgage is not assumed bythe partnership. B agreed to settle the mortgage using his personal funds.• The note payable is stated at face amount. A proper valuation requires the recognition of a ₱30,000discount on note payable.• A and B shall share in profits and losses 60% and 40%, respectively.5. How much is B’s initial capital in the partnership books? ____________6. Assume that a partner’s capital shall be increased accordingly by contributing additional cash to bringthe partners’ capital balances proportionate to their profit or loss ratio. Which partner should…
Mr..Park loaned P24,000,000 to Jay & Won Company. The loan is secured by land situated in North Carolina, U.S.A. with a book value and fair value of P30,000,000 and P18,000,000, respectively. Due to the current financial conditions, Jay & Won Company was forced to liquidate. What amount will the Mr. Park receive if unsecured creditors receive 30% of their claims?
Bray, Lincoln, and Mapes arranged to import and sell orchid corsages for a university dance. They agreed to share equally the net income or net loss of the venture. Bray and Lincoln advanced $900 and $1,380 of their own respective funds to pay for advertising and other expenses. After collecting for all sales and paying creditors, the partnership has $3,690 in cash. Use the minus sign to indicate any deficiency for the capital accounts. a. How much net income was earned from the venture? b. How should the $3,690 be distributed? c. Assume that the partnership has only $1,950 instead of $3,690. Complete the following table to determine if any of the three partners have a capital deficiency?
Charlie and Delta formed a partnership. Charlie invested cash worth P85,000 and a machine. On the other hand, Delta contributed cash worth P55,000 and an equipment which has a mortgage of P35.000 which Delta will pay personally The total capital after formation was P350,000. They also further agreed to reflect 55:45 ratio as to their capital balances respectively. No other investment or withdrawal occurred other than mentioned to reflect their capital ratio agreement. How much is the fair value of the machine?