Rehmat Islamic Bank sells a generator under a Murabaha contract which it acquired for Rs 1,000,000. The
Question:
Rehmat Islamic Bank sells a generator under a Murabaha contract which it acquired for Rs 1,000,000. The terms of the contract require that instalment are due over a period of three years. The annual instalment payment is Rs 400,000. At the time of sale, the cash equivalent price of the generator was 1,050,000. What amount will the bank recognise as deferred profit at the time of the sale?
a. Rs 200,000
b. Rs 50,000
c. Rs 150,000
d. Rs 100,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Financial Reporting For Islamic Financial Institutions Accounting Standards Interpretation And Application
ISBN: 9781032464022
1st Edition
Authors: Abdul Rauf Mahar, Ayesha Bhatti, Muhammad Junaid Ashraf, Asfand Zubair Malik
Question Posted: