In your capacity as a certified Islamic accountant who has been working for several years at HSBC Bank and presented to you the details of the two partnership financing contracts, and based on the applications of the partnership financing standard, he asked you for the following:1. Recording the daily entries of the contracts presented to you. and do a table explaining the details between John and the bank

for the Islamic bank in terms of achieving profits, and here is the information for both contracts

First contract details: Manama Islamic Bank partnered with client John to establish a car showroom on land owned by John.

The fair value of the land was 40,000 dinars, and the terms of the partnership contract were as follows:1. John will manage the project.

2. The bank pays to finance the project amount of 60,000 dinars in three installments to the contractor.

3 Distribute - the net revenue between John is 70% and the bank 30.

4 - John pays 90% of his net revenue to the bank, and this is considered a purchase of the bank's share in the project, and the payment takes place on 28- 12 annually

The following operations have occurred:

On February 13, 2012, the bank paid the amount of 20,000 dinars in cash to the contractor to complete the first phase.

On 021-25, the bank paid 30,000 dinars in cash to the contractor to complete the last phase of construction.

On January 13, 2013, John received the showroom and was ready to work.

The profits and losses for the first four years of the car showroom were as follows:

At the end of 2013, the profits were 80,000 dinars

At the end of 2014, the losses were (30,000) dinars.

At the end of 2015, the profits were 40,000 dinars.

At the end of 2016, the profits were 50,000 dinars.

Answer rating: 100% (QA)

Following are the daily entries of the contract be... View the full answer