HUK Islamic Bank advanced BD 200,000 to a client under a Musharakah arrangement and owns 40% of
Question:
HUK Islamic Bank advanced BD 200,000 to a client under a Musharakah arrangement and owns 40% of the equity of the business. At the end of the period, on December 31, 2023, as stipulated in the contract, the client paid back BD 100,000 of the principal. The accounting entry will be:
a. Debit Cash by 100,000, Credit Musharakah Capital by 100,000
b. Debit Musharakah Capital by 100,000, Credit Cash by 100,000
c. Debit Cash by 120,000, Credit Musharakah Capital by 120,000
d. Debit Musharakah Capital by 120,000, Credit Cash by 120,000
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: