In the beginning of 2018, Shifa' Islamic Bank and Lavender Limited decided to enter a Musharakah...

 

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In the beginning of 2018, Shifa' Islamic Bank and Lavender Limited decided to enter a Musharakah Mutanaqisah contract and agreed to have 70:30 as the profit-sharing ratio respectively. Shifa' Islamic Bank contributes RM 350,000 while Lavender Limited contribute RM 150,000 for the venture. During 2018 the venture had a profit of RM 200,000. At the end of 2018, Lavender Limited acquired 25% of the bank's shares and paid RM 90,000 to the bank. In the beginning of 2019, there was a theft cases and the business losses RM 50,000. At the end of the same year, the bank sold 35% of its shares to Lavender Limited and received RM 80,000 for that transaction. Required: i. ii. Prepare the Capital contribution ratio schedule for the Islamic bank and its customer for 2018 and 2019. Prepare all relevant journal entries to record the transactions for the year 2018 and 2019. In the beginning of 2018, Shifa' Islamic Bank and Lavender Limited decided to enter a Musharakah Mutanaqisah contract and agreed to have 70:30 as the profit-sharing ratio respectively. Shifa' Islamic Bank contributes RM 350,000 while Lavender Limited contribute RM 150,000 for the venture. During 2018 the venture had a profit of RM 200,000. At the end of 2018, Lavender Limited acquired 25% of the bank's shares and paid RM 90,000 to the bank. In the beginning of 2019, there was a theft cases and the business losses RM 50,000. At the end of the same year, the bank sold 35% of its shares to Lavender Limited and received RM 80,000 for that transaction. Required: i. ii. Prepare the Capital contribution ratio schedule for the Islamic bank and its customer for 2018 and 2019. Prepare all relevant journal entries to record the transactions for the year 2018 and 2019.

Answer rating: 100% (QA)

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