Bank Syariah entered into Ijarah with Mahabbah Sdn Bhd to lease an asset for 3 years. The bank purchased an equipment from a local trader for RM160,000 on 1^st January 2000. The bank incurred legal fee RM1,500. Other detail about the Ijarah are as follows:

Rental payment is 12k every 2 months or one year RM72k. 

Expenditure or repair maintenance in second year is RM12,000.     

The bank will transfer the ownership to Mahabbah for 50% of the salvage value. Salvage value of the machine is RM16,000  

You are required to

a. Prepare journal entries for the transaction from year 1 to 3 until the termination of the ijarah contract

b. Prepare the effect of the transactions in the balance sheet and the income statement of Bank Mahabbah from commencement to end of contract (show balances)