Question: answer by providing the steps and explanation Exercise 2 In January 1, 2013, Kuwait Finance House (KFH), Abu Dhabi Islamic Bank (ADIB) entered 4 years
Exercise 2 In January 1, 2013, Kuwait Finance House (KFH), Abu Dhabi Islamic Bank (ADIB) entered 4 years Musharakah contract with Al-Aqsa LLC with a contribution of KD 200,000 from KFH, KD 160,000 from ADIB and KD 240,000 from Al-Aqsa LLC. The profit-sharing ratio is agreed at 3:1:1 (KFH: ADIB: Al-Aqsa) for the first 2 years of the contract. For the last two years, the profit-sharing ratio is agreed to be 2:2:1. The profit and losses from the contract are as follows: Year 2013 2014 Profits (losses) (60,000) 80,000 10,000 (25000) 2015 2016 Required For each year: a) Determine the profit or losses attributable to KFH, ADIB and Al-Aqsa LLC from the contract b) Determine the capital amount recovered by KFH, ADIB and Al-Aqsa LLC c) Prepare the appropriate accounting entries at KFH
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